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:

Short Run

A period in economics where at least one factor of production is fixed, influencing the responsiveness of a company to changes in market demand.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.

Profit-maximizing

A strategy or behavior where a firm aims to achieve the highest possible profit from its operations, considering costs, revenue, and market conditions.