Kiley Corporation Had the Following Data for the Most Recent

question 55

Multiple Choice

Kiley Corporation had the following data for the most recent year (in millions) . The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000, (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made, by how many days would the cash conversion cycle be lowered?

• A) 34.0
• B) 37.4
• C) 41.2
• D) 45.3
• E) 49.8

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Definitions:

Activity-Based Costing

Accounting practice that assigns costs to products or services based on the precise resources they consume, offering more accuracy in costing.

Receiving Calls

The action or process of answering or accepting incoming telephone calls.

Time-Driven

Refers to a method or model that bases calculations, decisions, or processes on the passage of time, often focusing on efficiency and scheduling.

Tech Support

A service provided by companies to help their customers with technical problems or issues related to their products or services.