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A Firm Has an Average Age of Inventory of 60

question 8

Multiple Choice

A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is ________ days.


Definitions:

Fluctuation

Variability or changes in a state, condition, or level, often seen in contexts like economics or physical measurements.

Need for Order

The intrinsic human desire for organization, structure, and predictability in one's environment and life.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Need for Achievement

A psychological drive that motivates individuals to accomplish goals and excel in their endeavors.

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