JT Department Store Expects to Generate the Following Sales for the Next

question 19

Multiple Choice

JT Department Store expects to generate the following sales for the next three months: JT's cost of gods sold is 60% of sales dollars.At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold.What dollar amount of merchandise inventory should JT plan to purchase in August?

• A)$257, 400
• B)$314, 600
• C)$352, 800
• D)$327, 800

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Definitions:

Inefficient Use

The scenario where resources are not employed in the best possible manner, leading to wastage or suboptimal outcomes.

Wasteful Use

The inefficient or excessive consumption of resources without providing proportionate benefits.

Shortsightedness Effect

The tendency of decision-makers to prioritize short-term gains and benefits over long-term consequences, often resulting in adverse outcomes.

Political Action

Engagement in activities intended to influence public policy and leadership, ranging from voting to participating in demonstrations or lobbying efforts.