Qwik Stop Has Accounts Receivable of $4,830, Inventory of $9,083

question 20

Multiple Choice

Qwik Stop has accounts receivable of $4,830, inventory of $9,083, sales of $38,600, and cost of goods sold of $21,400. How many days does it take the firm to both sell their inventory and collect
The payment on the sale?

• A) 186 days
• B) 193 days
• C) 201 days
• D) 214 days
• E) 217 days

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Definitions:

Fixed Factory Overhead

The constant, recurring costs associated with operating a manufacturing facility, excluding variable costs such as direct labor and materials.

Volume Variance

The difference between the budgeted amount and the actual amount of goods sold, often analyzed to assess performance.

Volume Variance

A measure used in budgeting and financial analysis to quantify the difference between planned and actual volumes of production or sales.

Even Flow

A management strategy aimed at maintaining consistent production levels, minimizing fluctuations in inventory and workload.