Answer:
$28,065
Explanation:
The moving averages method uses the means of the previous months as the forecast for the next months.
The formula for the moving average is as below.
Moving Average = (n1 + n2 + n3 + ...) / n
In this case, the Moving average = $26,908 +$28,386 +$28,730, $27,290+ $29,009 / 5
= $140,323 /5
=$28,064.6
=$28,065
The answer for this question has to be a
Answer:
The answer is:
A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.
Explanation:
We have the current Inventory turnover = COGS / Inventory = 41,700/10,000 = 4.17 times
=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;
Increasing in inventory turnover may be the result of higher sales ( thus higher COGS) or low level of inventory holding - thus limiting the resources spending on idle inventory. So, higher level of inventory turnover in someways suggesting improvement in efficiency.
The market mechanism benefits society by ensuring that: <span>scarce resources are channeled into products most desired by society
Market mechanism determines which products stays or go by relying purely on the force of supply and demand. If the products are desired by the customers, the producer will always keep up with the demand in order to rake in the potential profit.</span>
