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2 years ago

Which of the following is NOT true of the cash conversion cycle?

Business

1 answer:

faltersainse [42]2 years ago

4 0

Answer:

C. Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle

Explanation:

At first glance, it is easy to identify that alternatives A and C are antagonistic meaning that one or the other must NOT be true.

Cash conversion cycle (CCC) describes the amount of days a company requires to convert its investments into cash flows from sales.

Production Cycle and Collection Cycle are both related to assets and thus are positive in the equation for the CCC. The payment cycle is a liability and therefore must be taken as negative in the equation.

The alternative C. Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle is NOT true

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Why do market fail? <br> A) merit good <br> B) storage<br> C) misusing the powers

Nimfa-mama [501]

The answer is C because you can't misuse your powers in business

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2 years ago

Fill in the blanks: The plan you present during the advise phase of your inbound sales strategy closes the gap between _______ a

Hitman42 [59]

The plan you present during the advise phase of your inbound sales strategy closes the gap between where the prospect is now and where they want to be.

Explanation:

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In that phase you need to paint an image that the current plan of your perspective will not get you where you want to go, and that the plan you are about to present will close the gap between where you want to go and where you are now. In your presentation, what you are doing is to explain how to close this gap.

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3 years ago

At Lequals86, Kequals90, the marginal product of labor is 8 and the marginal product of capital is 2. What is the marginal rat

Sidana [21]

Answer:

0.25

Explanation:

The marginal rate of technical substitution (MRTS) can be described as the rate of a reduction is one factor to maintain the same production level when another factor is increased.

Given that labor is measured on the horizontal axis, the MRST of K for L can be calculated as follows:

$MRST_{KL} = \frac{MP_{K} }{MP_{L} }$

Where;

MPK = Marginal product of capital = 2

MPL = Marginal product of labor = 8

Substituting the values into the equation, we have:

$MRST_{KL} = \frac{2}{8} =\frac{1}{4} = 0.25$

This implies that 0.25 of capital must be given up to have one unit of labor.

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2 years ago

Suppose that a firm has a price-earnings ratio which is higher than a value deemed to be normal. Investors tend to infer from th

Dmitrij [34]

Answer:

Explanation:

Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.

Price Earnings Ratio = $\frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}$

A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.

This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.

Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.

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3 years ago

Sunland’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $21000 Direct Labor 6000

algol13

Answer:

$9,000

Explanation:

Total variable cost of manufacturing the components are as follows;

Direct materials $21,000

Direct labor 6,000

Variable overhead 3,000

————

Total $30,000

If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;

$39,000 - 30,000 = $9,000 (unavoidable fixed cost)

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2 years ago

Which of the following is NOT true of the cash conversion​ cycle?

Which of the following is NOT true of the cash conversion cycle?