The inventory conversion period is the length of time from the payment for the purchase of raw materials to manufacture a product until the collection of accounts receivable associated with the sale of that product.

Question

Quizplus · Accepted Answer

The inventory conversion period is the length of time it takes to convert raw materials into finished goods and ultimately sell them, not the time between payment for raw materials and collection of accounts receivable.

The Inventory Conversion Period Is the Length of Time from the Payment