What Is the Inventory Conversion Period for O'Brian's If It

question 41

Multiple Choice

What is the inventory conversion period for O'Brian's if it has sales of $320,000, an average inventory of $5,333, and a cash conversion cycle of 20 days? Assume the cost of sales is 55% of sales.

• A) 6 days
• B) 11 days
• C) 13.5 days
• D) 15 days

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Definitions:

Load

Load involves the amount of work, stress, or pressure applied on a system, structure, or individual, often assessed to manage capacity and performance.

Collection Point

A designated location where goods are gathered or aggregated from various sources, typically for further distribution or processing.

Load

The total demand for power or the amount of work assigned to a particular machine, system, or network over a specific period.

Coordinates

Represents a set of numerical values that specify the location of a point in a space, usually defined by latitude and longitude or by Cartesian x, y, z axis values.