Norquay Inc

question 15

Multiple Choice

Norquay Inc.manufactures computers.The company tries to minimize the amount of inventory it must carry and therefore only purchases required components after a customer order is received.The computers are usually completed within two days of the customer order and then shipped to the customer on the fourth day following the purchase of materials.Supplier's terms dictate that all purchases must be paid for within 30 days.Norquay offers a deferred financing plan to all of its customers that allow them a 60-day period of no payments or interest.Most of the customers pay their entire balance on the 60th day following delivery of the computer.What is Norquay's inventory conversion period?

• A)2 days
• B)4 days
• C)30 days
• D)60 days

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Definitions:

Green River Ordinances

Local laws that prohibit door-to-door sales unless the salesperson has been invited by the homeowner, intended to protect residents from unwanted solicitations.

Buyer's Confidence

The level of trust and assurance a potential buyer has in the value and legitimacy of a product or service.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Product Knowledge

Product knowledge is the understanding of features, benefits, and uses of a product, crucial for effective sales and marketing.