Use the Following Information for Ephron Company to Compute Days

question 139

Multiple Choice

Use the following information for Ephron Company to compute days' sales in inventory for Year 2.(Use 365 days in a year.)

• A)52.4
• B)82.3
• C)50.5
• D)76.8
• E)79.3

Understand the concepts of debits and credits and their application in accounting transactions.

Record and interpret transactions involving different types of accounts (e.g., assets, liabilities, equity, expenses, revenues).

Perform a horizontal analysis of income statements to identify trends.

Understand and apply the principles of transaction analysis and journal entry preparation.

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Definitions:

Overhead Costs

Indirect costs not directly traceable to a specific product or service, including utilities, rent, and managerial salaries.

Activity Rate

An activity rate is the cost driver rate used in activity-based costing to allocate overhead costs to products or services.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into their production, providing more accurate cost information.

Resource Consumption

The use of resources (such as raw materials, energy, or labor) by a process, project, or activity, typically measured to manage efficiency and costs.