A Retailer Uses the Percentage Variation Method in Inventory Level

question 34

Multiple Choice

A retailer uses the percentage variation method in inventory level planning.If the store plans an average monthly stock of $400,000 and September sales are estimated at 20 percent more than average,the store's planned inventory level for September is ________.

• A) $420,000
• B) $440,000
• C) $454,000
• D) $480,000

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Definitions:

Creditors

Individuals or entities that lend money or extend credit, and to whom a debt is owed by debtors.

Assumes

Taking something for granted or accepting it as true without verification.

Debts

Amounts of money owed by one party to another, typically as a result of borrowing funds or purchasing goods and services on credit.

Corporate Dissolution

The process of legally terminating the existence of a corporation, involving the cessation of business operations, liquidation of assets, and distribution of the residual to creditors and shareholders.