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:

Generalized Anxiety Disorder

A psychological disorder characterized by excessive, uncontrollable, and often irrational worry about everyday things, significantly impacting daily functioning.

Antidepressants

Medications used to treat depression by altering the chemicals in the brain responsible for mood regulation.

Exaggerated

Describing something as being increased or enlarged beyond what is normal or reasonable.

Hormonal Differences

Variations in the types, levels, and effects of hormones in the body that can influence a wide range of physiological activities including development, mood, metabolism, and behavior.