The time interval between paying for raw materials and collecting on sales of finished goods made from those materials is known as the:

Question

Quizplus · Accepted Answer

The time interval between paying for raw materials and collecting on sales of finished goods made from those materials is known as the cash conversion cycle. This cycle includes the inventory cycle (time elapsed from acquiring raw materials to producing and selling finished goods) and the accounts receivable cycle (time elapsed from selling finished goods to collecting payment). The matching cycle is not directly related to this time interval.

The Time Interval Between Paying for Raw Materials and Collecting