The Time Interval Between Paying for Raw Materials and Collecting

question 72

Multiple Choice

The time interval between paying for raw materials and collecting on sales of finished goods made from those materials is known as the:

• A) inventory cycle.
• B) matching cycle.
• C) cash conversion cycle.
• D)accounts receivable cycle.

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Definitions:

Administrative Facilities

Infrastructure and buildings utilized by an organization to support its administrative functions, including offices, headquarters, and other operational spaces.

Insurance Expired

The portion of an insurance premium that applies to the elapsed part of the policy period, representing the cost of coverage that has already been provided.

Indirect

Costs that cannot be directly traced to a specific product or service, such as overhead expenses in manufacturing.

Indirect Material

Materials used in the production process that are not directly identifiable with specific products or jobs, such as lubricants and cleaning supplies.