Which of the Following Actions Would Be Likely to Shorten

question 32

Multiple Choice

Which of the following actions would be likely to shorten the cash conversion cycle?

• A) Change the credit terms offered to customers from 3/10 net 30 to 1/10 net 50.
• B) Begin to take cash discounts on inventory purchases; the terms are 2/10 net 30.
• C) Adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days.
• D) Change the credit terms offered to customers from 2/10 net 30 to 1/10 net 60.
• E) Adopt a new manufacturing process that speeds up the conversion of raw materials to finished goods from 20 days to 10 days.

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Definitions:

Stressors

are factors or stimuli that cause stress, challenging an individual's ability to cope and potentially affecting their mental or physical health.

Absenteeism

The habitual absence from work or duties without good reason, often affecting productivity and efficiency.

Presenteeism

The act of attending work while sick, which can reduce productivity and potentially exacerbate health issues.

Time Pressure

The stress or urgency to complete tasks or make decisions within a limited timeframe.