Days' Inventory on Hand Equals 365 Divided by

question 107

Multiple Choice

Days' inventory on hand equals 365 divided by

• A)inventory turnover.
• B)cost of goods sold.
• C)goods available for sale.
• D)average inventory.

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Definitions:

Competitive Level

The point where an entity can effectively compete in the market, usually by matching or surpassing competitors' offerings.

Consumer Surplus

The gap between the total price consumers are ready and able to pay for a good or service versus what they actually spend.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service versus what they actually receive, usually resulting from market prices above minimum selling prices.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a loss of total welfare or economic surplus.