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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Jamal

2 days ago

I'm going with A) $4.4 million. It's the lowest number, so it must be the right answer. Plus, who wants to deal with all that extra inventory anyway? I say, the less the better!

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Cathrine

5 days ago

Wait, is this a trick question? I bet the answer is C) $7 million. Why? Because the corporation is clearly trying to game the system and keep their inventory levels artificially high. Gotta love corporate accounting tricks!

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Gearldine

8 days ago

D) $7.6 million looks like the correct answer to me. If the annual COGS is $25 million and the inventory turns goal is 5.0, then the average inventory level should be $25 million / 5.0 = $5 million. But they're probably rounding that up to $7.6 million to be on the safe side.

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Lennie

12 days ago

I agree with Christoper, the answer is B) $5 million because it meets the inventory turns goal of 5.0.

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Gilma

16 days ago

I disagree, I believe the answer is C) $7 million.

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Christoper

21 days ago

I think the answer is B) $5 million.

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Gayla

1 months 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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Stefania

9 days ago

Yes, $5 million is the average inventory level needed to meet the corporate inventory turns goal of 5.0.

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Gerald

30 days ago

That makes sense, $5 million is the right answer to achieve the desired inventory turns goal of 5.0.

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Reita

1 months ago

I agree, the inventory level should be one-fifth of the annual COGS, which is $25 million. So $5 million seems correct.

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