The Amount of Time from When a Customer Places an Order

question 120

Multiple Choice

The amount of time from when a customer places an order for a product to when the product or service is delivered to the customer is referred to as ________.

• A) manufacturing lead time
• B) delivery time
• C) customer-response time
• D) a time driver

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Accounts Payable Turnover Ratio

A financial metric that measures how quickly a business pays off its suppliers by comparing net credit purchases to average accounts payable.

Inventory

The total amount of goods and materials held by a company for sale in the ordinary course of business.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.