Which of the Following Statements Is Correct Concerning the Days

question 84

Multiple Choice

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

• A)It measures 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.

---

Definitions:

Walking Purchase

A 1737 agreement between the Penn family, the proprietors of Pennsylvania, and the Lenape Indians, which fraudulently expanded Pennsylvania territory by utilizing a forged document.

Lenni Lenape Indians

A Native American tribe originally inhabiting parts of the Northeastern United States, also known as the Delaware Indians.

Inconsequential

means not important or significant; having little or no importance.

Deceptive

Pertaining to or involving deceit; misleading or giving a false impression.