Which of the Following Measures the Average Time from Purchase

question 36

Multiple Choice

Which of the following measures the average time from purchase of materials and labor to actual cash payment?

• A)sale-to-cash conversion period
• B)inventory-to-sale conversion period
• C)purchase-to-payment conversion period
• D)cash conversion cycle

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Definitions:

Price Floor

A government-imposed minimum price charged on goods and services, set above the equilibrium price to prevent market prices from falling too low.

Consumer Surplus

The discrepancy between consumer willingness to pay a total amount for a product or service and the amount they really do pay.

Consumer Surplus

The difference in the total amount consumers are predisposed and financially prepared to pay for a good or service versus their actual expenses.

Normal Good

A good for which demand increases as consumer income rises, and decreases when consumer income falls, all other factors being constant.