The ____ is the average length of time required to convert materials into finished goods and then to sell those goods.
A) payables deferral period
B) receivables collection period
C) cash conversion period
D) inventory conversion period

Question

Quizplus · Accepted Answer

The inventory conversion period represents the average time required to convert raw materials into finished goods and then to sell those goods. It is an important measure of the efficiency of a company's operations, as shorter inventory conversion periods generally indicate that a company is more efficient in managing its supply chain and production processes.

The ____ Is the Average Length of Time Required to Convert