APICS Certified Supply Chain Professional (CSCP) — Question 62

Cash-to-cash cycle time is a measure of a firm's:

Answer options

• A. responsiveness to customer's requirements
• B. working capital utilization
• C. agility to meet changing customer requirements
• D. total supply chain accounts receivable

Correct answer: B

Explanation

The correct answer, B, refers to how well a company manages its working capital, which is directly measured by the cash-to-cash cycle time. Options A and C focus on responsiveness and agility, which are related but do not directly measure working capital utilization. Option D pertains specifically to accounts receivable and does not encompass the broader concept of working capital management.