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Why does the inventory days calculation use adjusted cost of goods sold instead of sales? a) Because sales includes the markup or profit, which would
Why does the inventory days calculation use adjusted cost of goods sold instead of sales? a) Because sales includes the markup or profit, which would give an unreliable calculation b) because although sales include a markup (or profit element) over costs, accounts receivable do not, meaning the sales figure cannot be used c) because not all sales are made for cash and it is not straightforward to just adjust for accounts receivable balances
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