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

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The time interval between paying for raw materials and collecting on sales of finished goods is known as the cash conversion cycle. This refers to the time it takes for a company to convert its investments in inventory, production, and accounts receivable into cash flow. The inventory cycle refers to the time it takes to produce and sell inventory, the matching cycle refers to the process of matching expenses with revenues, and the accounts receivable cycle refers to the time it takes to collect on outstanding customer invoices.

The Time Interval Between Paying for Raw Materials and Collecting