Consider the Following Inventory Data What Is the Average Days in Inventory for the Year

question 102

Multiple Choice

Consider the following inventory data: $$\begin{array} { l r } \text { Beginning inventory } & \$ 150,000 \\\text { Ending inventory } & 100,000 \\\text { Purchases } & 310,000\end{array}$$ What is the average days in inventory for the year?

• A) 126.7 days.
• B) 101.4 days.
• C) 152.0 days.
• D) 111.7 days.

Understand the concept of overhead application and selection of cost drivers in different types of organizations.

Differentiate between favourable and unfavourable variances and their implications on financial performance.

Recognize the significance of stabilizing product costs in varying business activities.

Understand the concept of fixed and variable overheads and their impact on cost control.

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A financial analysis technique that involves comparing different figures from the balance sheets, income statements, or other financial reports.