Order Cycle Time Is

question 151

Multiple Choice

Order cycle time is

• A) the time between when an order is placed and when payment is received.
• B) the time between the sale of the first production batch to the sale of the next production batch.
• C) the cycle between one full warehouse shipment to the next full warehouse shipment.
• D) the time between the ordering of an item and when it is received and ready for use or sale.
• E) the average time between reorders by a given wholesaler or retailer in the marketing channel.

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Definitions:

Journal Entry

A record of a financial transaction in the accounting books of a business, showing the accounts affected and the amounts.

Invoice

A document issued by a seller to a buyer that lists goods or services provided, prices, and payment terms.

Ledger

A comprehensive collection of a company's financial transactions, organized by account.

Net Income

The total earnings a company makes after all expenses and taxes have been deducted from revenue.