Last Year, Able Company Had Sales of $10 Million, Cost

question 2

Multiple Choice

Last year, Able Company had Sales of $10 million, Cost of Goods Sold of $6 million, Gross Profit of $4 million and Net Profit of $1 million.Average inventory at cost was $2 million.Able's inventory turn rate was:

• A)5 times
• B)3 times
• C)2 times
• D).5 times

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Definitions:

Practical Constraints

Limitations or restrictions arising from real-world circumstances, which can affect how tasks are performed or decisions are made.

Planning Fallacy

The cognitive bias that leads people to underestimate the amount of time needed to complete a task, despite knowing that similar tasks have taken longer in the past.

Dissertation

A lengthy, formal document presenting the author's research and findings, typically required for the completion of a doctoral degree.

Goal Shielding

A cognitive process where focusing on a primary goal helps to block out competing goals, thus avoiding distractions.