A Company Has an Average Inventory on Hand of $40,000

question 25

Multiple Choice

A company has an average inventory on hand of $40,000 and its average days in inventory are 26.4 days. What is the cost of goods sold?

• A) $553,030.
• B) $1,056,000.
• C) $486,667.
• D) $480,000.

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Definitions:

Consumer Protection

Laws and regulations intended to safeguard buyers of goods and services from unfair, deceptive, or harmful practices by sellers.

Whistle-blower

An individual who exposes illegal, unethical, or wrong practices within an organization to the public or to authorities.

Additives

Substances added to products, such as food or fuel, to enhance their properties or preserve their quality.

Secretly

The act of keeping something hidden or undisclosed from others.