Cass & Company Has the Following Data

question 86

Multiple Choice

Cass & Company has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days
Average collection period = 17 days
Payables deferral period = 25 days

• A) 31 days
• B) 34 days
• C) 38 days
• D) 42 days
• E) 46 days

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Definitions:

Direct Labor

The workforce directly involved in manufacturing a product or delivering a service, whose costs are directly attributable to the product.

Variable Manufacturing

Costs in manufacturing that vary with the level of production output, such as raw materials and labor costs.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and depreciation of equipment, excluding direct materials and direct labor.

Direct Labor

Direct labor refers to the work of employees directly involved in the manufacturing of products.