Author Question: What is the Order-to-Cash cycle?[br][br][b][color=#151B54]Question 2[/color][/b][br][br]To narrow ... (Read 154 times)

itsmyluck · **on:** Jun 28, 2018

What is the Order-to-Cash cycle?

Question 2

To narrow the search for consumers, search engines used to measure the relevance of a website or an information page by counting the number of times the searched words appeared on that web page or document. Why don't they use this criterion anymore?
a. It was too difficult to calculate.
b. It was illegal.
c. It was easily manipulated.
d. It discriminated unjustly.

bob · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

The order-to-cash cycle includes all of the activities that occur from the time an order is received by a seller until the seller receives payment for the shipment. Typically, the invoice is sent to the customer after the order is shipped. If the terms of sale are net 30 days, the seller will receive payment in 30 days plus the time needed to process the order. The longer the order-to-cash cycle, the longer it takes for the seller to get its payment. The longer the order-to-cash cycle, the higher the accounts receivable and the higher the investment in sold finished goods. So the length of the order-to-cash cycle directly relates to the amount of capital tied up and not available for other investments.

Answer to Question 2

c