The Average Cash-To-Cash Cycle Is Defined As

question 5

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:

Incremental Cost

An increase in cost between two alternatives.

Manufacturing Cost

The total cost incurred by a company to manufacture a product, including raw materials, labor, and overhead expenses.

Production Increase

An upturn in the amount of products manufactured and processed in a given period compared to a previous period.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.