Matthews Company Has a Policy of Maintaining an Inventory of Finished

question 133

Multiple Choice

Matthews Company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales.For the forthcoming month of March,Matthews has budgeted the beginning inventory at 30,000 units and the ending inventory at 33,000 units.This suggests that

• A)February sales are budgeted at 10,000 units less than March sales.
• B)March sales are budgeted at 10,000 units less than April sales.
• C)February sales are budgeted at 3,000 units less than March sales.
• D)March sales are budgeted at 3,000 units less than April sales.

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Definitions:

Delegation

The process of assigning responsibility and authority to someone else in order to complete a clearly defined task while retaining accountability for the outcome.

Accountability

The requirement to show performance results to a supervisor.

Obligation

A duty or commitment that an individual or organization is bound to fulfill, often due to legal, moral, or social reasons.

Centralized

A system or organization structure where decision-making authority is concentrated at a single point, usually at the top hierarchical level.