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2 years ago

What is inventory turnover? Explain the effect of a high inventory turnover during the Christmas shopping season.

Business

1 answer:

charle [14.2K]2 years ago

4 0

Answer:

$\frac{Sales}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Inventory=(Beginning Inventory + Ending Inventory)/2$

The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.

A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.

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Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarett

Romashka-Z-Leto [24]

C) convenience de others don’t make most of its revenues from those items

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2 years ago

Gable Ceramics, a division of Alderman Corporation, has an operating income of $ 64 comma 000 and total assets of $ 400 comma

solniwko [45]

Answer:

The question is meant to compare the original ROI and RI before the investment compared to the new investment is ROI and RI

The new investment has a lower return on investment of 11% compared to original 14%

However,the project should be considered since it has $3000 residual income in additional to the original residual income

Explanation:

The return on investment and residual income before the new investment are computed thus:

return on investment=operating income/total assets=$64,000/$400,000=16%

residual income=operating income-(total assets*rate of return)

=$64,000-($400,000*11%)=$20,000

Thereafter,the return on investment and residual income on the new investment are computed thus:

return on investment=operating income/total assets=$14,000/$100,000=14%

residual income=operating income-(total assets*rate of return)

=$14,000-($100,000*11%)=$3,000

4 0

2 years ago

Cafeteria Department Cutting Department Assembly Department Janitorial Department cost allocation $155,000 $31,000 $124,000 Cafe

Mama L [17]

Answer: Assembly Department

Explanation:

Missing part of question is attached below.

Cutting Department

Under the direct method, the Cutting Department is allocated $62,000 of the Janitorial cost and $126,750 of the Cafeteria cost for a total of:

= 62,000 + 126,750

= $188,750

Assembly department

Allocated $248,000 of the Janitorial cost and $42,450 of Cafeteria:

= 248,000 + 42,450

= $290,450

Assembly Department is therefore the department that is allocated the most support department costs under the direct method. 

7 0

2 years ago

The short-run economic outcome resulting from the increase in production costs is known asstagflation . Now suppose that the gov

masha68 [24]

Answer: Increase

Explanation: When government pursues accommodative policy as implied in the question, it would lead to a surge or increase in price level this is as a result of lower interest rates which tends to increase money supply thereby leading to a higher economic growth. Higher growth automatically translates to a higher employment, Which would likely lead to a higher inflation rate.

3 0

2 years ago

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operatio

zloy xaker [14]

Answer:

Absorption costing income is $29,500 higher than variable costing.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Absorption costing:

Unitary production cost= (80 + 50 + 10) + (295,000 / 10,000)= $169.5

Sales= 9,000*200= 1,800,000

COGS= 9,000*169.5= (1,525,500)

Gross profit= 274,500

Sales expense= (9,000*8)= (72,000)

Net income= $202,500

Variable costing:

Unitary production cost= 140

Sales= 1,800,000

Total variable cost= (140 + 8)*9,000= (1,332,000)

Total contribution margin= 468,000

Fixed manufacturing overhead= (295,000)

Net operating income= $173,000

Difference= 202,500 - 173,000= $29,500

Absorption costing income is $29,500 higher than variable costing.

4 0

2 years ago