APICS Certified Supply Chain Professional (CSCP) — Question 224

If the total revenue for a firm increases due to a change in sales price, yet all other factors remain constant, the firm will experience:

Answer options

• A. a decrease in cash-to-cash cycle time.
• B. a decrease in asset turnover.
• C. an increase in asset turnover.
• D. an increase in cash-to-cash cycle time.

Correct answer: C

Explanation

The correct answer is C, as an increase in revenue from a higher sales price, with constant costs, leads to a greater asset turnover ratio. Options A and D are incorrect because changes in sales price do not directly affect cash-to-cash cycle time. Option B is also incorrect since increased revenue typically results in improved asset turnover.