The Length of Time Between the Payment for Inventory and the Collection

question 31

Multiple Choice

The length of time between the payment for inventory and the collection of cash from receivables is called the:

• A)operating cycle.
• B)inventory period.
• C)trade receivables period.
• D)trade payables period.
• E)cash cycle.

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Definitions:

Facility Locations

Facility Locations pertain to the strategic positioning of business locations, such as factories, warehouses, and offices, considering factors like costs, logistics, and proximity to markets.

Shipping Costs

The expenses associated with transporting goods from one location to another.

Feasible Solution

A potential solution to a problem that meets all the constraints and requirements of the situation or mathematical model.

Demand Constraints

Limitations on the amount of goods or services that can be demanded, often influenced by factors such as price, income, and market competition.