Dell Computer has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. If both its cost per unit and its selling price per unit remained constant, this accomplishment will result in a/an ________________ for the firm.

Respuesta :

Answer:

Decrease in days sales in inventory.

Explanation:

The Days sales inventory for Dell computers will decrease because sales have increased; the amount of goods which it sells has increased whereas holding amount of inventory in hand is constant.  

The formula to calculate day’s sales inventory is  

Inventory / cost of goods sold * 365  

If sales are increasing then cost of goods sold will also increase reducing the day’s sales inventory .

Answer:

The correct phrase for the blank space is: decrease in the days sales inventory.

Explanation:

Days Inventory Sales or DSI is a key financial indicator of the performance of the company relating to the management of inventories. DSI shows how many days it takes for a firm to sell its inventory. DSI also represents the average number of days' worth of sales kept in inventory at any given time.

Thus, if Dell Computer is selling its goods faster and its inventory is kept at a constant level, the DSI is likely to decrease.