Asked by Carol Hersan on Jul 01, 2024
Verified
What does the days' sales in raw materials inventory ratio reveal?
Days' Sales
A financial metric that estimates the average time it takes for a company to turn its inventory into sales.
Raw Materials Inventory
The total cost of all the materials kept in stock that are intended to be used in the manufacturing process.
- Interpret various accounting ratios and their significance in assessing inventory management.
Verified Answer
JG
Jordan Gaines6 days ago
Final Answer :
Days' sales in raw materials inventory reveals how much raw materials inventory is available in terms of the number of days' sales.
Learning Objectives
- Interpret various accounting ratios and their significance in assessing inventory management.
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