Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?
A) Raw materials used/Average raw materials inventory.
B) Ending raw materials/Raw materials used * 365.
C) Raw materials used/Beginning raw materials inventory * 365.
D) Average raw materials inventory/Raw materials used.
E) Raw materials purchased/Average raw materials inventory.

Question

Quizplus · Accepted Answer

The raw materials inventory turnover is calculated by dividing the raw materials used by the average raw materials inventory. This measures how efficiently a company uses its raw materials.

Which of the Following Represents the Correct Formula for Calculating