Which of the Following Represents the Correct Formula for Calculating

question 74

Multiple Choice

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

• A)Raw materials purchased/Average raw materials inventory.
• B)Average raw materials inventory/Raw materials used.
• C)Raw materials used/Average raw materials inventory.
• D)Ending raw materials/Raw materials used * 365.
• E)Raw materials used/Beginning raw materials inventory * 365.

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Definitions:

Legal Action

A formal proceeding by which a party seeks to enforce or protect a legal right through a court of law.

Mutual Mistake

A legal concept where both parties involved in a contract have a shared misunderstanding about a critical fact of the contract.

Unilateral Mistake

Occurs when one party to a contract is mistaken about a basic assumption on which they made the contract, and the other party either knows or has reason to know of the mistake.

Standard-Size

Refers to products or items that are made to adhere to specific, established dimensions or norms commonly accepted in their category.