Thornton Universal Sales' Cost of Goods Sold (COGS) Average $2,000,000

question 51

Multiple Choice

Thornton Universal Sales' cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its monthly COGS on hand at all times.Using a 365-day year, what is its inventory conversion period?

• A) 11.7 days
• B) 13.0 days
• C) 14.4 days
• D) 15.2 days
• E) 16.7 days

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Definitions:

Social Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Economic Model

A theoretical construct that represents economic processes through a set of variables and a set of logical and/or quantitative relationships between them.

Benefits

Advantages or positive outcomes derived from a particular action, decision, or situation.

Terror Management Theory

A psychological theory suggesting that much of human behavior is motivated by an underlying fear of death, leading individuals to seek symbolic or literal immortality through their actions and beliefs.