Selected Year-End Data for the Brayer Company Are Presented Below

question 216

Multiple Choice

Selected year-end data for the Brayer Company are presented below: The company has no prepaid expenses and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to:

• A) 1.20 times.
• B) 1.67 times.
• C) 2.33 times.
• D) 2.40 times.

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Definitions:

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or production volume.

Differentiates

Distinguishes or separates entities or products by characteristics, qualities, or features, making them distinctive or unique in the market.

Opportunity Cost

The price paid for missing out on the alternative that ranks second best when deciding.

Excess Capacity

Refers to a situation where a company has more production ability than is necessary for the current level of demand.