Which of the following is the correct formula for calculating raw materials inventory turnover for a manufacturer?
A. Raw materials used/Beginning raw materials inventory × 365.
B. Raw materials purchased/Average raw materials inventory.
C. Raw materials used/Average raw materials inventory.
D. Ending raw materials/Raw materials used × 365.
E. Average raw materials inventory/Raw materials used.
Answer: C
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Which of the following is the first step in the purchasing and payment process?
A) The purchaser receives an invoice for the goods shipped by the supplier. B) The purchaser sends a check to the supplier. C) The purchaser sends a purchase order to the supplier. D) The purchase receives the inventory and prepares a receiving report.
Which of the following statistics is not permissible for interval data (Table 8.1 in the text)?
A) factor analysis B) harmonic mean C) binomial test D) t-tests
All else equal, a normal stock split or a stock dividend:?
A. ?results in a significant increase in the per share price of the stock. B. ?reduces the profits earned by a firm. C. ?increases the number of shares of stock outstanding. D. ?should not be recognized on the balance sheet of a corporation. E. ?increases the dividend per share.
An inventory loan agreement in which the inventories pledged as collateral are physically
separated from the firm's other inventory and placed under the control of a third-party is called A) a securitized inventory loan arrangement. B) a field warehouse agreement. C) a floating lien agreement. D) a chattel mortgage agreement.