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Question
Companies A, B, C, and D are competitors in the same industry. Assume that all have adequate quantities of raw materials to meet production needs.
| Company AA | Company BB | Company CC | Company DD | Company EE | |
| Raw materials used in a year | $10,000 | $20,000 | $30,000 | $30,000 | $40,000 |
| Beginning raw materials inventory | $700 | $600 | $500 | $400 | $800 |
| Ending raw materials inventory | $1,100 | $1,000 | $900 | $800 | $1,000 |
Which company has the best raw materials inventory turnover?
A. Company A
B. Company B
C. Company C
D. Company D
E. Company E
Answer
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