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22 July, 10:05

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

a. A measure of 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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  1. 22 July, 10:08
    0
    C

    Explanation:

    This is because the days' sales of raw material in inventory tells us the number of days it took a company to sell its inventory during a recent period and it is calculated by taking the raw materials used divided by the average raw materials inventory.
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