An operations manager in concerned that the order-to-cash cycle for their largest customer is too long. The manager is referring to the time that elapses from when the company receives an order from the customer until the:
An operations manager in concerned that the order-to-cash cycle for their largest customer is too long. The manager is referring to the time that elapses from when the company receives an order from the customer until the:
The order-to-cash cycle refers to the business process that starts when an order is received and ends when the payment is received. This cycle includes accepting the order, processing it, shipping the goods, and finally receiving payment from the customer. Therefore, the manager is referring to the time that elapses from receiving the order to receiving the payment from the customer.
Agree correct answer D
Answer is D. Order-to-Case cycle ends when payment is processed and received from the customer. Customer internal inventory status has no bearing on the seller.
Answer D Order-to-cash cycle, what he calls end-to-end throughput, in aggregate units and/or revenue dollars. The order-to-cash cycle starts with a customer order and ends when raw material suppliers receive their cash.
D. company receives payment. D is incorrect because the company receiving payment comes after the customer has processed payment.
C is true. Customers receive inventory before AP processes invoice. This is a case of getting goods to the customer faster so payment process can be accelerated.