The Average Inventory at Hamilton Industries, Comprising Raw Materials, Work-In-Process

question 62

Multiple Choice

The average inventory at Hamilton Industries, comprising raw materials, work-in-process, and finished goods, was found to be $17.2 million last year. If the cost of goods sold per week averaged $1.32 million, what was the inventory turnover experienced by Hamilton Industries? Assume the company had 50 working weeks per year.

• A) less than or equal to 3.50
• B) greater than 3.50 but less than 3.75
• C) greater than 3.75 but less than 4.00
• D) greater than 4.00

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Definitions:

Monthly Seasonal Indexes

Quantitative measures that adjust for seasonal variation in data by month, often used in forecasting and analyzing trends.

Moving Average

A statistical technique used to analyze data points by creating a series of averages of different subsets of the full data set.

Seasonal Variation

Refers to periodic fluctuations in data or variables that are related to seasonal changes.

Deseasonalized Time Series

Time series data which has been adjusted to remove the effects of seasonal variations.