The Following Information Was Available for Hoover Company at December

question 116

Short Answer

The following information was available for Hoover Company at December 31, 2010: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000. Hoover's days in inventory in 2010 was
A 38.8 days.
B) 44.0 days.
C) 50.0 days.
D) 60.8 days.

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Definitions:

Lengel-Daft Contingency Model

A theory that suggests the effectiveness of information richness in communication varies with the nature of the task or situation.

Media Richness Hierarchy

A theory that ranks communication media according to their capacity to convey information effectively and accurately, with richer media being more capable of handling complex messages.

Face-To-Face Communication

Direct interaction between people in the same location, often considered the most effective form of communication.

Lean Media

An approach to media production and consumption that emphasizes minimalism, eliminating wastage, and focusing on value from the perspective of the end user.