Based on the Following Data for the Current Year, What

question 139

Multiple Choice

Based on the following data for the current year, what is the number of days' sales in inventory? $\begin{array}{ll}\$ 1,204,500 & \text { Net sales on account during year } \\657,000 & \text { Cost of merchandise sold churing year } \\75,000 & \text { Accounts receivable, begining of year } \\85,000 & \text { Accounts receivable, end of year } \\81,600 & \text { Inventory, beginning of year } \\98,600 & \text { Inventory, end of year }\end{array}$

• A) 50.1
• B) 45.3
• C) 24.7
• D) 29.9

---

Definitions:

Profit Center

A business unit or department within an organization that is responsible for generating its own revenue and profit.

Direct Expenses

Costs that can be directly traced to a product, service, or activity without any need for allocation.

Profit Center

A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.

Uncontrollable Costs

Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.