Which of the Following Conversion Periods Is Not a Component

question 29

Multiple Choice

Which of the following conversion periods is not a component in the cash conversion cycle?

• A)inventory-to-sale conversion period
• B)sale-to-cash conversion period
• C)purchase-to-payment conversion period
• D)fixed assets-to-usage conversion period

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Definitions:

VCR

A video cassette recorder, a device once commonly used to play and record television programs and movies on magnetic tape.

Perfect Substitutes

Goods or services that can be used in exactly the same way, thus one can completely replace another in consumption.

Marginal Rate of Substitution

The speed at which a consumer is prepared to exchange one product for another while keeping their overall satisfaction constant.

Utility Maximizing

The process or behavior of consumers attempting to get the greatest amount of satisfaction from their consumption choices, subject to their income and the prices of goods and services.