During the Year the Following Changes Were Observed

question 75

Multiple Choice

During the year the following changes were observed. I.Inventory period increased by 12 days.
II) Receivables period decreased by 6 days.
III) Accounts payable period increased by 4 days.
Find the net change in cash conversion cycle.

• A) -10 days
• B) +2 days
• C) +10 days
• D) +14 days

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Definitions:

LRMC

Long-Run Marginal Cost, which is the additional cost of producing one more unit of output when all inputs, including capital, are variable.

LRAC

Long-Run Average Cost, a curve that shows the lowest possible average cost of production, allowing all factors of production to vary.

Long-run Elasticities

Measure of responsiveness of demand or supply to changes in price or income, considered over a period long enough for all adjustments to be made.

Short-run Elasticities

Measures of how responsive the quantity demanded or supplied of a good is to a price change over a short period.