APICS Exam CLTD Topic 1 Question 102 Discussion

Actual exam question for APICS's CLTD exam

Question #: 102
Topic #: 1

[All CLTD Questions]

A corporation is projecting annual sales at S35 million, cost of goods sold (COGS) at S25 million, and administrative expenses at $3 million. In order to meet its corporate inventory turns goal of 5.0, their inventory level must average:

A$4.4 million.

B$5 million.

C$7 million.

D$7.6 million.

Show Suggested Answer

Suggested Answer: D

by Eric at Jun 12, 2025, 04:40 PM

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Gayla

2 days ago

I think the answer is B) $5 million. The corporation's inventory level must be set to achieve the desired inventory turns goal of 5.0, which means the average inventory level should be one-fifth of the annual COGS, which is $25 million. So $5 million seems like the right answer.

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