The Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 99

True/False

The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer.Still, suppliers have some flexibility in the credit terms they offer.If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.

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Definitions:

Objective And Task Method

A budgeting method in marketing where objectives are set first, and then the tasks needed to achieve these objectives are determined.

Center of Excellence Model

A dedicated team or entity that provides leadership, best practices, research, support, and training for a specific focus area or domain within an organization.

Silo Model

An organizational structure that segregates different departments or units, limiting communication and collaboration between them.