If the Inventory Turnover Is Divided into 360, It Becomes

question 110

Multiple Choice

If the inventory turnover is divided into 360, it becomes a measure of

• A) the average collection period.
• B) sales turnover.
• C) sales efficiency.
• D) the average age of the inventory.

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Definitions:

Actual Price

The real price at which a transaction occurs, distinct from list or estimated prices, reflecting the amount paid or received in a transaction.

Standard Price

A predetermined cost attributed to materials, labor, and overhead to facilitate budgeting and variance analysis.

Efficiency Standard

A benchmark for measuring the optimal use of resources in the production of goods or the delivery of services.

100% Efficiency

A theoretical situation where all resources are utilized to their maximum capacity without any waste, often used as a benchmark or target in productivity and operations management.