Which of the Following Will Increase the Cash Cycle,all Else

question 38

Multiple Choice

Which of the following will increase the cash cycle,all else constant?
I.increasing the inventory period
II.decreasing the accounts receivable turnover rate
III.increasing the accounts payable period
IV.decreasing the accounts receivable period

• A)I and II only
• B)III and IV only
• C)I and IV only
• D)I, II, and III only
• E)I, III, and IV only

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.

Overhead Applied

An accounting method used to allocate estimated overhead costs to specific products or job orders based on a predetermined rate or method.

Machine Hours

A measure of the amount of time a machine is operating during a specific period.