A Negative Cash Conversion Cycle (CCC) Means the Average Payment

question 263

True/False

A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operating cycle (OC).

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Definitions:

Institutional Memory

The collective knowledge and history held within an organization, enabling it to learn from past experiences and decisions.

Hidden Cost

Expenses not immediately apparent or obvious when purchasing or investing in something, often becoming clear later on.

Product Quality

refers to the characteristics of a product that determine its ability to satisfy stated or implied customer needs.

Service Quality

Refers to the measurement of how well a delivered service matches the customer's expectations.