The Number of Days' Sales in Inventory Measures

question 173

Multiple Choice

The number of days' sales in inventory measures

• A) the length of time it takes to acquire, sell, and replace the inventory
• B) the length of time it takes to acquire and receive payment for the inventory
• C) the number of days inventory is on hand prior to sale
• D) the number of days inventory takes to arrive after ordering

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Definitions:

Cost-Plus Approach

A pricing tactic that involves setting a sales price by adding a predetermined margin to the cost of the product.

Administrative Expenses

Costs related to the general management and administration of a company, such as salaries of executive officers and costs of general services.

Normal Levels

Standard measurements or averages that are considered typical or expected within a specific context, such as production, performance, or inventory levels.

Cost-Plus Approach

A pricing strategy where a fixed percentage or amount is added to the cost of producing a product or service to determine its selling price.