Multiple Choice
Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?
A) It measures how long it takes raw materials to be used in production.
B) The ratio is not useful 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 higher number of days' sales in raw materials inventory.
E) Is calculated by taking the Raw materials used/Average raw materials inventory.
Correct Answer:
Verified
Correct Answer:
Verified
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