The Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 99

True/False

The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer.Still, suppliers have some flexibility in the credit terms they offer.If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.

---

Definitions:

Goals and Objectives

Specific outcomes that an organization or individual aims to achieve within a set timeframe.

Performance Targets

Specific goals set by a company or individual regarding the desired outcome of their work, often used to measure success or progress.

Marketing Program

A comprehensive plan that combines and coordinates various marketing activities and strategies to achieve business objectives.

Profit

The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.