Based on the Following Data for the Current Year, Compute

question 25

Multiple Choice

Based on the following data for the current year, compute the inventory turnover. ? $$\begin{array} { l r } \text { Net sales on account during the year } & \$ 585,000 \\\text { Cost of merchandise sold during the year } & 380,000 \\\text { Accounts receivable, beginning of year } & 47,000 \\\text { Accounts receivable, end of year } & 36,000 \\\text { Inventory, beginning of year } & 92,000 \\\text { Inventory, end of year } & 113,000\end{array}$$

• A) 1.1
• B) 1.9
• C) 3.7
• D) 2.9

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Definitions:

Spending Variance

A metric that compares the actual cost of production against the budgeted or standard cost, highlighting over or under spending.

Materials

The physical commodities used in the production of goods, ranging from raw materials to fully fabricated components.

Spending Variance

The difference between the actual spending and the budgeted or planned spending amount in a given period.

Medical Supplies

Products and equipment used in healthcare practices for treatment, diagnosis, or preventive care purposes.