Definition for : Days of work-in-process ratio

Days of work-in-process ratio reflects the time required for work-in-process, semi-Finished goods and Work-in-progress to be completed, in other words, the length of the Production cycle. This ratio is obtained by dividing work-in-process, semi-Finished goods and Work-in-progress by daily Cost of goods sold.

(See Chapter 11 Working capital and capital expenditures of the Vernimmen)

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