Which of the Following Represents the Correct Way to Calculate

question 2

Multiple Choice

Which of the following represents the correct way to calculate Total Days of Inventory on Hand?

• A) Average inventory balance  average daily pharmacy expense
• B) Average daily pharmacy expense  average inventory balance
• C) Number of errors  the total number of orders filled
• D) Number of orders filled  the total number of errors

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Definitions:

Discounting

A financial strategy that adjusts the future value of cash flows to their present value, often for analysis or investment decisions.

Actual Interest Rate

The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding and all fees and charges.

Non-Interest-Bearing

Refers to financial instruments or accounts that do not yield interest over time, such as some checking accounts.

Discounted

The practice of reducing the selling price of goods or services, often to encourage sales.