Which of the Following Is the Correct Formula to Calculate

question 79

Multiple Choice

Which of the following is the correct formula to calculate days' sales in inventory?

• A) Days' sales in inventory = 365 days × Inventory turnover
• B) Days' sales in inventory = 365 days + Inventory turnover
• C) Days' sales in inventory = 365 days / Inventory turnover
• D) Days' sales in inventory = 365 days - Inventory turnover

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Definitions:

High Tariffs

Elevated taxes imposed on imports or exports between sovereign states, typically used to protect domestic industries.

Unionized Firms

Companies or organizations where a labor union represents the interests of the employees, negotiating wages, work conditions, and benefits on their behalf.

Foreign Competition

refers to the competitive pressure that domestic companies face from companies located in other countries.

Elastic Demand

A situation where the quantity demanded of a product changes significantly in response to changes in its price.