The Average Inventory at Hamilton Industries, Comprising Raw Materials, Work-In-Process

question 62

Multiple Choice

The average inventory at Hamilton Industries, comprising raw materials, work-in-process, and finished goods, was found to be $17.2 million last year. If the cost of goods sold per week averaged $1.32 million, what was the inventory turnover experienced by Hamilton Industries? Assume the company had 50 working weeks per year.

• A) less than or equal to 3.50
• B) greater than 3.50 but less than 3.75
• C) greater than 3.75 but less than 4.00
• D) greater than 4.00

---

Definitions:

GDP Deflator

A measure of inflation that divides the nominal GDP by the real GDP and then multiplies by 100, showing how much prices have changed over a specific period.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in terms of constant prices.

Real GDP

Real GDP, or Real Gross Domestic Product, measures the value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Psychic Cost

The mental and emotional energy or stress involved in making a decision or taking an action, not typically measured in financial terms.