Which of These Is Most Apt to Decrease the Cash

question 81

Multiple Choice

Which of these is most apt to decrease the cash cycle?

• A)Decreasing the credit period granted to a customer
• B)Decreasing the inventory turnover rate
• C)Decreasing the accounts payable period
• D)Decreasing the accounts receivable turnover rate
• E)Increasing the receivables period

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Definitions:

Technical Efficiency

The ability of a firm to get the maximum output from a given set of inputs, minimizing waste.

Marginal Product

The additional output obtained by employing one more unit of a variable factor of production, holding all other inputs constant.

Total Product

The sum of all products or services generated by a company or economic system within a defined timeframe.

Average Product

The output per unit of input, calculated by dividing the total product (output) by the total quantity of input used.