If Beginning and Ending Inventories Are $20,000 and $30,000,respectively,and Cost

question 95

Multiple Choice

If beginning and ending inventories are $20,000 and $30,000,respectively,and cost of goods sold is $400,000,what is the inventory turnover ratio?

• A)18
• B)16
• C)15.5
• D)15

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Definitions:

Oligopoly

A market structure in which a few companies dominate the industry, having significant control over prices and supply.

Monopolistic Competition

A trading environment where countless firms peddle products that bear resemblance but are not exact duplicates, offering them a fragment of control in the marketplace.

Pure Monopoly

A market structure where a single firm controls the entire market for a product or service, with no close substitutes and significant barriers to entry.

Allocatively Inefficient

A situation where resources are not distributed in a way that maximizes the benefits to society, often leading to a loss of economic welfare.