Days' Sales in Inventory Is Calculated As

question 56

Multiple Choice

Days' sales in inventory is calculated as:

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

---

Definitions:

Clear Preferences

The state of having distinct and definite likes or choices, which can be consistently ranked or ordered by an individual or a group.

Basic Economic Theory

Fundamental principles of economics that explore how resources are allocated, goods and services are distributed, and wealth is created and transferred.

Reference Point

The point from which an individual makes a consumption decision.

Past Consumption

refers to the total amount of goods and services consumed in previous time periods, influencing current and future economic decisions.