Which of the Following Statements Is Correct Concerning the Days

question 163

Multiple Choice

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

• A) Most companies generally prefer a higher number of days' sales in raw materials inventory.
• B) A measure of how long it takes raw materials to be used in production.
• C) Reveals how many times a company turns over its raw materials inventory in a period.
• D) The ratio is not useful for a manufacturer.
• E) Is calculated by taking the Raw materials used/Average raw materials inventory.

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Definitions:

Plant Manager

An individual responsible for overseeing the operations, management, and success of a manufacturing or production facility.

Task Strategy

The plan or approach adopted to accomplish a specific task or objective effectively.

Direction of Attention

The focus or concentration of mental effort on a particular object, task, or activity.

Persistence

A personal quality that reflects the ability to continue steadfastly or firmly in some action or path, despite difficulties or opposition.