Examlex

Solved

A Firm Has a Cash Conversion Cycle of 120 Days

question 20

Multiple Choice

A firm has a cash conversion cycle of 120 days, an average collection period of 25 days, and anaverage payment period of 50 days. The firm's average age of inventory is __________days.


Definitions:

Direct Manufacturing Cost

The sum of all the cost components that are directly attributable to the production process, including direct materials and direct labor.

Units Produced

The total number of units of a product that have been manufactured during a specific period.

Manufacturing Overhead Costs

The indirect costs associated with manufacturing, including costs related to running the factory floor that are not directly traceable to specific units of products.

March

The third month of the year in the Gregorian calendar, known for marking the transition from winter to spring in the Northern Hemisphere.

Related Questions