The elapsed time between an order's receipt, delivery, and payment is called the ________.

Question

Quizplus · Accepted Answer

The order-to-payment cycle refers to the time it takes for an order to be received, fulfilled, and paid for. This includes the time it takes to process the order, manufacture or obtain the product, ship it to the customer, and collect payment. This cycle is important for managing cash flow and ensuring timely payment from customers. The other options listed (variable-costs-to-payment cycle, product-to-payment cycle, inventory-to-sale cycle, and order-to-inventory cycle) do not fully capture the elapsed time between receipt, delivery, and payment of an order.

The Elapsed Time Between an Order's Receipt, Delivery, and Payment