Which of the Following Actions Would Be Likely to Shorten

question 62

Multiple Choice

Which of the following actions would be likely to shorten the cash conversion cycle?

• A) Adopt a new manufacturing process that speeds up the conversion of raw materials to finished goods from 20 days to 10 days.
• B) Change the credit terms offered to customers from 3/10,net 30 to 1/10,net 50.
• C) Begin to take discounts on inventory purchases;we buy on terms of 2/10,net 30.
• D) Adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days.
• E) Change the credit terms offered to customers from 2/10,net 30 to 1/10,net 60.

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Real-World Issues

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Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society inherited from past generations.

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A stage from Erik Erikson's theory of psychosocial development, typically associated with late adulthood, where individuals reflect on their life to determine if they have lived meaningfully or have regrets.

Late Adulthood

A life stage characterized by the age period of 65 years and older, often associated with retirement, physical aging, and increased focus on social and emotional ties.