Information About Blum Company Is as Follows

question 65

Multiple Choice

Information about Blum Company is as follows:
- What is the partial operational productivity measure for labor for 2012?

• A) 2.400
• B) 2.500
• C) 3.300
• D) 2.325

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Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of raw materials and the collection of cash from the sale of products, measuring how efficiently a company manages its working capital.

Inventory Period

The average time it takes for a company to turn its inventory into sales.

Accounts Receivable Period

Also known as days sales outstanding (DSO), it measures the average number of days it takes for a company to collect payment after a sale has been made.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products or services, and collect cash from these sales.