A Firm Can Reduce Its Cash Conversion Cycle by ________

question 313

Multiple Choice

A firm can reduce its cash conversion cycle by ________.

• A) increasing the average age of inventory
• B) increasing the average collection period
• C) increasing the operating cycle
• D) increasing the average payment period

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Definitions:

Minimize Costs

Minimizing costs involves strategies and actions taken to reduce expenses and improve efficiency in operations, aiming to increase profitability.

Expected Value

The projected value of a variable, calculated as an average weighted by probabilities in statistical analysis.

Expected Monetary Value

A statistical technique to calculate the average outcome when the future includes scenarios that may or may not happen.

State of Nature Node

A decision analysis tool used to represent possible future events or outcomes in decision making under uncertainty.