The Lag from Ordering an Item Until It Is Received

question 12

Multiple Choice

The lag from ordering an item until it is received and ready for use or sale is referred to as

• A)order cycle time.
• B)order handling time.
• C)order-to-ship duration.
• D)purchase cycle.
• E)logistics cycle.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

EBIT

Earnings Before Interest and Taxes, a firm's earnings metric, accounts for all operational expenses aside from interest and taxes.

Return on Equity Ratio

The return on equity ratio measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue by comparing sales with total assets.