标题: FSA: sample exam: q22: Ready Power Inc. [打印本页] 作者: maratikus 时间: 2013-4-4 06:45 标题: FSA: sample exam: q22: Ready Power Inc.
q22, what is DOH? periodic or a perpetual counting system?
what is cash conversion cycle? Thanks.作者: meghanjackson 时间: 2013-4-4 06:48
DOH = Days of Inventory on hand
= 365/Inventory Turnover
= 365/ (COGS/Avg Inventory)
Perpetual counting system is an inventory cost flow method. Instead of valuin ginventory at year end (under FIFO or LIFO), it is constantly updated.
Cash Conversion cycle is = Days Sales Outstanding + Days inventory on hand - Days of payables
=365/AR Turnover + 365/Inventory Durnover - 365/Payables turnover
= 365/ (sales/avg receivables) + 365/(COGS/avg inventory) - 365/(purchases/avg payables).
Going back to LI, does anyone remember the difference between Cossh conversion and operating cycle? is operating cycle just DSO + DOH?作者: JoeyDVivre 时间: 2013-4-4 06:59
I have no idea. I was just answering the question haha.
