Calculate the Variance for the Below Chart

question 16

Multiple Choice

Calculate the variance for the below chart:

• A) $5,450
• B) ($5,450)
• C) ($5,750)
• D) $5,750

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Definitions:

COGS

Cost of Goods Sold, representing the direct costs attributable to the production of the goods sold by a company.

Operating Cycle

The duration of time from the acquisition of goods for inventory to the sale of the goods and the collection of payment.

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods during a certain period, indicating efficiency in managing inventory.

Receivables Turnover

A measure of a company's efficiency in collecting its sales on credit, calculated by dividing sales by average accounts receivable.