Multiple Choice
Which of the following statements is correct concerning the Days' sales in raw materials inventory?
A) Reveals how much raw materials inventory is available in terms of the number of days' sales.
B) The ratio does not need to be calculated as it is not important for a manufacturer.
C) Reveals how many times a company turns over its raw materials inventory in a period.
D) Most companies generally prefer a high ratio.
E) Is calculated by taking the Raw materials used/Average raw materials inventory .
Correct Answer:
Verified
Correct Answer:
Verified
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