Question
CCC= DIO + DSO - DPO 1. Use the above formula to answer the two following questions Explain what does a negative cash conversion cycle
CCC= DIO + DSO - DPO
1. Use the above formula to answer the two following questions Explain what does a negative cash conversion cycle mean (hint negative CCC is an indicator of inventory being sold before even paying for it)and what each part of the formula is telling you?(For example is it better to have a higher DIO and DSO or a higher DPO?
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
