Which of the following is a plausible explanation for a large increase in the number of days outstanding in inventory?
A)Obsolete inventory.
B)New product line where sales exceed production.
C)Manufacturing overhead was not allocated to the production process.
D)Manufacturing salaries were recorded as administrative expenses.

Question

Quizplus · Accepted Answer

Obsolete inventory can lead to a large increase in the number of days outstanding in inventory because it is not selling, thus remaining in inventory for a longer period.

Which of the Following Is a Plausible Explanation for a Large