Which of the Following Is the Correct Formula for Calculating

question 47

Multiple Choice

Which of the following is 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:

Acts of Owners

These are actions taken by the owners of a business, such as investing additional capital, withdrawing funds, or making decisions that impact the company's operations and policies.

Government Regulation

Laws and rules established by government bodies that businesses must comply with in their operations.

Corporate Form

A legal structure of a business organization that is separate from its owners, with distinct rights and responsibilities.

Organizational Expenses

Costs associated with forming a corporation, partnership, or other types of entities, such as legal fees and state filing fees.