Days in Inventory Is Calculated by Dividing

question 106

Multiple Choice

Days in inventory is calculated by dividing

• A)the inventory turnover by 365 days.
• B)average inventory by 365 days.
• C)365 days by the inventory turnover.
• D)365 days by average inventory.

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity produced, representing the per-unit cost of production.

Marginal Cost

Refers to the increase in total production costs resulting from the production of one additional unit of a good or service.

Single-Price

A pricing strategy where a product is sold at the same price to all customers under similar conditions.

Pure Monopoly

A market structure where a single firm is the sole provider of a product or service, without close substitutes, giving it significant control over pricing.