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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Definitions:

Marriages Break Up

The termination of a marital union, also known as divorce, which involves the legal dissolution of a marriage by a court or other competent body.

20 Years

A period of two decades, often used to denote a significant duration of time in reference to human lives, historical events, or processes.

Psychological Well-Being

A state of mental health that encompasses aspects of emotional, social, and psychological fulfillment and balance.

Middle-Aged Persons

Individuals typically in the age range of 45 to 65 years, often considered to be in the middle stage of life.