Days' Sales in Raw Materials Inventory Is a Measure Of

question 25

Multiple Choice

Days' sales in raw materials inventory is a measure of:

• A) How much raw materials are needed for the company to earn a profit.
• B) How long it takes the company to pay for raw materials..
• C) How many times a company turns over its raw materials during a period.
• D) How long it takes raw materials to be used in production.
• E) The product costs a company has incurred during a period.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all similar items in the inventory.

Process Costing System

An accounting method used where goods are produced in a continuous process, costs are averaged over the units produced to determine per unit cost.

Dust Density Sensors

Devices used to measure the concentration of particulate matter in the air for environmental monitoring or industrial processes.

Weighted-Average Method

A technique that figures out the cost of sold goods and the finishing inventory value, by averaging the cost of all items up for sale.