Which of the Following Statements About Cycle Time Is Not

question 49

Multiple Choice

Which of the following statements about cycle time is not true?

• A) Cycle time refers to the total elapsed time from the beginning of a process to its end.
• B) Shorter cycle times mean that problems are caught earlier in the process.
• C) Finding ways to reduce cycle time often means finding ways to simplify production steps.
• D) The fewer steps in a production process, the more likely that an error will occur.
• E) Information systems can help reduce cycle time.

---

Definitions:

Receipts And Disbursements

Refers to the process of recording incoming and outgoing monetary transactions within a particular period.

Investment In Current Assets

Funds used to acquire assets that are expected to be converted into cash, sold, or consumed within a year.

Long-term Unsecured Credit

A type of loan given based on the borrower's creditworthiness without the need for collateral, typically with a repayment period beyond one year.