Which of the Following Statements Is Correct Concerning the Days

question 77

Multiple Choice

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

• A)A measure of 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.

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Definitions:

Equity

The value of an ownership interest in property or businesses, after deducting debts and liabilities.

First-Time Entrepreneurs

Individuals starting a business for the first time, often facing unique challenges and learning experiences.

Profitable Sales

Transactions that result in excess revenue over the cost of goods sold (COGS) and other expenses, contributing to the financial gain of a business.

High Value-Added

Products or services that undergo significant improvements or enhancements, adding considerable value over the basic cost of materials and production.