The Cash Conversion Cycle (CCC)is Defined As

question 34

Multiple Choice

The cash conversion cycle (CCC) is defined as:

• A)Inventory Days + Accounts Receivable Days - Accounts Payable Days.
• B)Inventory Days - Accounts Receivable Days - Accounts Payable Days.
• C)Inventory Days + Accounts Receivable Days + Accounts Payable Days.
• D)Inventory Days + Accounts Payable Days - Accounts Receivable Days.

---

Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the real profitability of the business.

Loss

The result of a company or individual spending more money than they receive.

Equilibrium

An equilibrium in the market where demand equals supply, causing price stability.

Kinked-demand Model

A model used to explain price stability in oligopolistic markets, suggesting that firms may not change their pricing in response to small changes in costs or demand due to a perceived kink in the demand curve.