Which of the Following Would Result in a Negative Cash

question 46

Multiple Choice

Which of the following would result in a negative cash conversion cycle?

• A)A negative cash conversion cycle is not possible
• B)Average collection period of 7 days, inventory conversion period of 30 days and payables deferral period of 30 days
• C)Average collection period of 60 days, inventory conversion period of 30 days, payables deferral period of 7 days
• D)Average collection period of 7 days, inventory conversion period of 30 days, payables deferral period of 60 days

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Definitions:

Customizing

The process of making or altering something according to the user's specific needs or preferences.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and salaries of non-direct labor.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined formula.

Machine-Hours

The quantity of time machines are in operation, regarded as a factor in production cost calculations.