A firm with a operating cycle of 200 days and an cash conversion cycle of 120 days has an average payment period of:
A) 320
B) 80
C) 40
D) 20

Name: A firm with a operating cycle of 200 days and an cash conversion cycle of 120 days has an average payment period of: A) 320 B) 80 C) 40 D) 20
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash conversion cycle (CCC) is calculated as the operating cycle minus the average payment period. Given an operating cycle of 200 days and a CCC of 120 days, the average payment period is 200 - 120 = 80 days.

A Firm with a Operating Cycle of 200 Days and an Cash