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

Question

Quizplus · Accepted Answer

A decrease in production time means that goods can be produced and sold faster, resulting in a shorter time period between the purchase of raw materials and the receipt of cash from the sale of finished goods. This will result in a decrease in the cash conversion cycle.

A Decrease in the Production Time to Manufacture a Finished