Cash-to-cash cycle time refers to:
A) the amount of time required to handle a significant ramp up in production.
B) the amount of time needed for turning a firm's inputs into goods and services.
C) the time between when an organization purchases raw materials and when they are paid by the customer.
D) the amount of time required for maximizing the benefits from successful supply chain management.
E) the amount of time needed to eliminate excess waste and reduce inventory to a minimal level.

Question

Quizplus · Accepted Answer

Cash-to-cash cycle time refers to the time it takes for a company to convert its investments in raw materials and other production inputs into cash received from customers. It is the time between when the company must pay for its inputs, such as raw materials or labor, and when it receives payment for the finished products from customers. Therefore, option C is the correct answer.

Cash-To-Cash Cycle Time Refers To