A decrease in the production time to manufacture a finished good will result in__________ in the cash conversion cycle.
A) a decrease
B) no change
C) an increase
D) an undetermined change

Question

Quizplus · Accepted Answer

A decrease in production time means that the finished goods can be sold faster, which will result in a shorter cash conversion cycle. This is because the time it takes to convert inventory into cash is reduced, resulting in a decrease in the cash conversion cycle.

A Decrease in the Production Time to Manufacture a Finished