Which of the Following Actions Would Be Likely to Shorten

question 113

Multiple Choice

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

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

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Definitions:

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A lab facility within a physician's office used for onsite basic diagnostic tests and analysis.

Biohazard Sharps Container

A rigid, puncture-resistant container designed to safely dispose of needles, scalpels, and other sharp medical instruments that may be contaminated with biohazardous materials.

SDS Notebook

A binder or digital collection of Safety Data Sheets which provide detailed information about the properties and handling instructions for hazardous chemicals.

Oil-Immersion Lens

A type of microscope lens used with a drop of oil to increase the resolution of the image seen through the microscope by reducing the refraction of light.