1.Cash-to-cash cycle time is a measure of a.Assets b.Agility c.Responsiveness 2.
ID: 358482 • Letter: 1
Question
1.Cash-to-cash cycle time is a measure of
a.Assets
b.Agility
c.Responsiveness
2.Jingle Corporation received an order from a customer for 100 units of bells, 200 units of whistles, and 200 units of dingers. The customer received from Jingle Corporation 90 units of bells, 190 units of whistles, and 200 units of dingers. Jingle's line fill rate was (hint see p. 369):
a.90%
b.95%
c.33.33%
3.Cash-to-conversion is:
a. Typically related to inventory turns
b.Related to freight payment
c. Is a measure of manufacturing efficiency
4.Inventory turnover is a measure of :
a.Customer service
b.Asset utilization
c.Productivity
Explanation / Answer
Answer 1
Option a
Cash to cash cycle time means the time period between the day the firm purchases its inventory to the day it receives the payment after the sale of same. It is duration between cash outlay and cash recovered. Thus it is measure of assets .
Answer 2
Line fill rate = ( 90÷ 100) + (190 ÷ 200) + ( 200÷ 200)
=( 0.9 + 0.95 +1) ÷ 3
= 0.95
95%
Answer 3
Option c
Cash conversion means how quickly and efficiently the company can convert the cash on hand to inventory. Thus it is measure of efficiency of company.
Answer 4
Option b
Inventory turnover is the ratio used to calculate the number of times the inventory is sold during whole year . The ratio is calculated by duvidind cost of goods sold by Average inventory. Therefore it is measure of assets utilisation as it is part of asset turnover ratio
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