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.

---

Definitions:

Repression

A defense mechanism where distressing thoughts, memories, or urges are excluded from conscious awareness.

Neurogenic Amnesia

A form of amnesia resulting from damage to the brain that affects memory consolidation or retrieval.

Defence Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and the perception of internal or external threats.

Rationalization

Rationalization is a defense mechanism where individuals justify their actions or beliefs in a logical manner to avoid facing the true underlying motivations or feelings.