Both the operating cycle and the cash conversion cycle can be reduced by shortening the inventory period.

Name: Both the operating cycle and the cash conversion cycle can be reduced by shortening the inventory period.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Shortening the inventory period means that inventory is sold or used up more quickly, which can reduce both the operating cycle and the cash conversion cycle. This is because there is less time tied up in holding inventory before it is sold and converted into cash.

Both the Operating Cycle and the Cash Conversion Cycle Can