Cycle Time Is

question 37

Multiple Choice

Cycle time is

• A) the time it takes to collect the account after the sale.
• B) the time it takes to turn inventory over.
• C) the time it takes to deliver the product after it is sold.
• D) the time it takes to produce one unit of product.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Depreciation Tax Shield

The tax savings achieved by a company from the deductible expenses of depreciation, reducing its taxable income.

Present Value

The value today of a future sum of money or cash flow sequence, calculated using a defined rate of return.

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.