The time that elapses from when a company receives an order until it gets paid for delivering the order is called the:
A) product life cycle.
B) order to cash cycle.
C) order management process.
D) replenishment process.

Question

Quizplus · Accepted Answer

The order to cash cycle is the time that elapses from when a company receives an order until it gets paid for delivering the order. This cycle includes processes such as order management, fulfillment, shipping, and invoicing. Option A is incorrect because product life cycle refers to the stages a product goes through from introduction to decline. Option C is incorrect because order management process is just one part of the order to cash cycle, encompassing activities such as order entry, order tracking, and order changes. Option D is incorrect because the replenishment process focuses on restocking inventory, not the entire order to cash cycle.

The Time That Elapses from When a Company Receives an Order