BP Has an Average Age of Inventory of 60 Days

question 171

Multiple Choice

BP has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. Based on this information, BPs cash conversion cycle is ________ days.

• A) 55
• B) 65
• C) 75
• D) 85

Make informed decisions on whether to make or buy components based on relevant costs.

Determine the best product mix to maximize the use of a constrained resource.

Evaluate the financial advantage/disadvantage of further processing products.

Make decisions on resource allocation based on contribution margin and constrained resources.

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Definitions:

Customer Service Objective

A goal or set of goals a business sets to guide its customer service team in providing exceptional service and support.

Amazon

An American multinational technology company primarily known for its e-commerce platform, offering a wide range of products and services online.

Empowering Employees

Giving workers more autonomy, authority, and control over their work, encouraging them to take initiative and make decisions.

Frontline Employee

Workers who interact directly with customers, playing a crucial role in delivering services and creating customer experiences.