Days' Sales in Inventory Is Calculated As

question 56

Multiple Choice

Days' sales in inventory is calculated as:

• A) Ending inventory divided by cost of goods sold.
• B) Cost of goods sold divided by ending inventory.
• C) Ending inventory divided by cost of goods sold times 365.
• D) Cost of goods sold divided by ending inventory times 365.
• E) Ending inventory times cost of goods sold.

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Definitions:

Monitors

Devices or people appointed to observe, check, and keep a continuous record of a process or situation.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.

Middle-school/junior-high

Educational institutions that provide schooling for preteen and early teenage students, often encompassing grades 6 through 8.

Early-childhood

A period in human development from birth up to approximately 8 years, characterized by rapid physical and mental growth.