The is the time period that elapses from the point when the firm purchases raw materials for manufacturing a finished good to the point when the finished good is sold.

Question

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The inventory conversion period refers to the time it takes for raw materials to be converted into finished goods and sold. It is a measure of how efficiently a company is managing its inventory. The cash turnover measures how quickly a company is generating cash from its sales, the average collection period measures how long it takes a company to collect its accounts receivables, and the cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivables into cash.

The Is the Time Period That Elapses from the Point