Suppose Demand Is 45 Units a Month,average Inventory Is 60

question 35

Multiple Choice

Suppose demand is 45 units a month,average inventory is 60 units,and unit cost is $20.What is the annual inventory turnover?

• A)10
• B)9
• C)0.75
• D)15

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Definitions:

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporation's charter, not necessarily reflecting their market value.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholders' equity.