Which of the Following Actions Would Be Likely to Shorten

question 113

Multiple Choice

Which of the following actions would be likely to shorten the cash conversion cycle?

• A) Change the credit terms offered to customers from 3/10 net 30 to 1/10 net 50.
• B) Begin to take discounts on inventory purchases; we buy on terms of 2/10 net 30.
• C) Adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days.
• D) Change the credit terms offered to customers from 2/10 net 30 to 1/10 net 60.
• E) Adopt a new manufacturing process that speeds up the conversion of raw materials to finished goods from 20 days to 10 days.

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Definitions:

Social Roles

The parts individuals play as members of a social group, which come with specific expectations, behaviors, and responsibilities.

Self-Serving Bias

is the common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Temporal Comparison

The process of comparing one's current self to one's past self, often used as a method of self-evaluation and motivation.

Reaction Formation

A defense mechanism in which an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.