Wayne's Wax World Has an Inventory Turnover of 16 Times

question 52

Multiple Choice

Wayne's Wax World has an inventory turnover of 16 times per year and a cost of goods sold of $1,600.Calculate the average inventory turnover.

• A) 22.81
• B) 1,000
• C) 4.38
• D) 13.92
• E) 14.25

---

Definitions:

Constrained Resource

Refers to a limited factor that restricts a company's ability to produce goods or services, such as a machine with finite capacity or limited labor.

Profitable Use

The application or employment of an asset or resource in a manner that generates income or profit.

Craft Shows

Events where artisans and craftsmen display and sell their handmade goods.

Split-Off Point

The stage in the production process where joint products can be recognized as separate products.