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.

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Definitions:

Positioning

The strategy of placing a brand or product in the market to occupy a distinct place in the minds of target customers relative to competing products.

Target Market

A specific group of potential customers at whom a company aims its products and services, identified by demographic, geographic, and psychographic characteristics.

Licensing

A legal process in which one firm pays to use or distribute another firm’s resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge.

International Markets

Refers to the various markets operating in different countries around the globe, where goods, services, and currencies are exchanged across national boundaries.