The Average Cash-To-Cash Cycle Is Defined as

question 8

Multiple Choice

The average cash-to-cash cycle is defined as

• A) Days in inventory + days in account receivable + days in accounts payable.
• B) Days in inventory - days in account receivable + days in accounts payable.
• C) Days in inventory + days in account receivable - days in accounts payable.
• D) Days in inventory - days in account receivable - days in accounts payable.

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Definitions:

Lean Manufacturing

An organized approach to reducing waste in a production system without compromising efficiency.

Make to Stock

A production strategy where products are manufactured in anticipation of demand, based on forecasts, and stored in inventory.

Pull Manufacturing

A production strategy where work is only initiated as per demand, aiming to reduce inventory levels and increase efficiency.

Make to Order

is a manufacturing process in which production starts only after a customer's order is received.