Which of the Following Statements Is Correct Concerning the Days

question 114

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 .

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