Alpha Beta Company Has a Sales Budget for Next Month

question 154

Multiple Choice

Alpha Beta Company has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000.
How much merchandise inventory will Alpha Beta Company need to purchase next month?

• A)$29,000
• B)$29,500
• C)$30,000
• D)$30,500

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Definitions:

Empirical Research

Research based on observed and measured phenomena, aiming to obtain knowledge through empirical evidence.

Process Approach

A methodology in management and quality improvement that views activities as collections of interconnected processes, focusing on optimizing these processes to enhance performance.

Wide-Ranging

Covering a broad scope or variety of topics, areas, or subjects, often indicating an extensive or comprehensive reach.

Interactive Process

An ongoing method involving two or more parties that influence each other through action and reaction.