How Is the Cash Conversion Cycle Computed

question 19

Multiple Choice

How is the cash conversion cycle computed?

• A)days' inventory outstanding + days' sales outstanding - days' payable outstanding.
• B)days' inventory outstanding - days' sales outstanding - days' payable outstanding.
• C)days' inventory outstanding - days' sales outstanding + days' payable outstanding.
• D)days' inventory outstanding + days' sales outstanding + days' payable outstanding.

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Definitions:

High Distinctiveness

A term in social psychology referring to the extent to which an individual's behavior can be attributed to the circumstances rather than internal traits.

Situational Attribution

The process of attributing behavior to external or environmental factors, rather than internal characteristics.

Fundamental Attributional Error

The fundamental attributional error is a cognitive bias that leads individuals to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Stable Characteristics

Traits or attributes of an individual that are consistent over time and across situations.