What Is the Inventory Conversion Period for a Firm That

question 14

Multiple Choice

What is the inventory conversion period for a firm that has inventory of $1.5 million,a tax rate of 35 percent,daily cost of goods sold of $300,000,and profit margin of 12 percent?

• A) 3.25 days
• B) 0.60 days
• C) 5.00 days
• D) 6.75 days

---

Definitions:

Raising Beef

The agricultural practice of breeding and managing cattle for the purpose of producing beef for consumption.

Ricardian Model

A model in international trade theory that explains international trade patterns based on comparative advantage.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources, and technology, illustrating the trade-offs in production choices.

Opportunity Cost

Forgoing possible benefits from other options by selecting a particular one.