Days' Sales in Inventory

question 44

Multiple Choice

Days' sales in inventory:

• A)Is calculated by dividing cost of goods sold by ending inventory.
• B)Focuses on average inventory rather than ending inventory.
• C)Is used to measure solvency.
• D)Measures the adequacy of inventory to meet sales demand.
• E)Is a substitute for the acid-test ratio.

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Definitions:

Nonstore Retailing

Nonstore retailing involves selling goods or services to consumers without a traditional physical retail presence, through methods like online shopping, direct mail, or telemarketing.

Direct-Mail Retailing

A marketing strategy where companies send promotional materials directly to potential customers through postal mail.

Print-Media Retailing

The sale of goods or services through print mediums such as newspapers, magazines, or direct mail advertisements.

Vending Machines

Automated machines that dispense products such as snacks, beverages, or tickets to consumers after money, a credit card, or a specially designed card is inserted.