Days' Sales in Inventory Is Calculated As

question 33

Multiple Choice

Days' sales in inventory is calculated as:

• A)Ending inventory divided by sales times 365.
• 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 divided by cost of goods sold.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the higher price they actually receive.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Area

A measure of the extent of a two-dimensional surface or shape, or the amount of space inside the boundary of a flat (2D) object.

Per-unit Burden

The cost or tax levied on each unit of a good or service.