For the Year Ended December 31, 2014 Depot Max's Cost

question 5

Multiple Choice

For the year ended December 31, 2014 Depot Max's cost of merchandise sold was $56,900. Inventory at the beginning of the year was $6,540. Ending inventory was $7,250. Depot Max's number of days sales in inventory is closest to

• A) 42
• B) 46
• C) 8
• D) 44

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Definitions:

Kanban System

A workflow management method originating from Japan, designed to help visualize work, maximize efficiency, and improve agility by using cards to signal the need to move materials or perform tasks.

Customer Workstation

A designated area or terminal where customers can perform tasks or access services, often in a retail or office setting.

Kanbans

A scheduling system for lean manufacturing and just-in-time manufacturing that signals the need to move materials within a production facility.