The raw material purchasing reports can provide management with insight into how to improve processes. Additional raw materials purchasing analytics can be used for decision making and dashboards. Which raw material purchasing analytic calculates purchasing ratios, such as accounts payable turnover days, purchasing to sales, and purchases growth to sales growth?
A) Vendor performance
B) Receiving reconciliation
C) Vendor prices
D) Financial ratios

Question

Quizplus · Accepted Answer

Financial ratios are the analytics that calculate purchasing ratios like accounts payable turnover days, purchasing to sales, and purchases growth to sales growth. These ratios are crucial for understanding the financial health and efficiency of the purchasing process.

The Raw Material Purchasing Reports Can Provide Management with Insight