1. The cash conversion cycle refers to the:
a. time taken to convert all long-term assets to cash.
b. average length of time between the purchase of raw materials and labor and the payment of cash for them.
c. length of time from the payment for the purchase of raw materials to manufacture a product until the collection of accounts receivable associated with the sale of the product.
d. time it takes to collect cash following a sale.
e. amount of time a product remains in inventory in various stages of completion.
2. From the information given below, the economic order quantity (EOQ) for Shinebird Textiles is _____.?
Ordering cost = $10 per order
Carrying cost = 20% of purchase price
Purchase price = $10 per unit
Total sales for year = 1,000 units?
a. 150 units
b. 100 units
c. 900 units
d. 300 units
e. 250 units