Raw materials inventory turnover equals raw materials used divided by average raw materials inventory.

Name: Raw materials inventory turnover equals raw materials used divided by average raw materials inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Raw materials inventory turnover is calculated by dividing the raw materials used during a period by the average raw materials inventory. This ratio measures how efficiently a company is using its raw materials, and a higher turnover ratio indicates more efficient utilization of raw materials.

Raw Materials Inventory Turnover Equals Raw Materials Used Divided by Average