ABC Incprovided the Following Data for the Year End: Cost of of Goods

question 83

Multiple Choice

ABC Inc.provided the following data for the year end: Cost of goods sold
$4,680,000
Inventory at the beginning of the year
678,000
Inventory at the end of the year
570,000
​
What is ABC Inc.'s days' sale in inventory? (Assume 360 days in a year)

• A) 95 days
• B) 13 days
• C) 60 days
• D) 48 days

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Profit-Maximizing

A strategy or point at which a business makes the highest profit possible, given its production costs and market demand.

Total Revenue

The entire amount of income generated by the sale of goods or services by a company before any expenses are deducted.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.