Which of the Following Represents the Correct Formula for Calculating

question 167

Multiple Choice

Which of the following represents the correct formula for calculating days' sales in raw materials inventory 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 inventory/Raw materials used × 365.
• E) Raw materials used/Beginning raw materials inventory × 365.

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Definitions:

Equal Pay Act

A U.S. law enacted in 1963 aimed at abolishing wage disparity based on sex.

Non-liquidated Damages

Compensation amounts not specified in a contract, to be determined in case of a breach according to the actual harm suffered.

Employer Fines

Penalties imposed on employers for violations of employment laws or regulations.

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The existence of a variety of cultural or ethnic groups within a society.