………...............is the time span between the receipt of raw material and their conversion into finished goods.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Production cycle.
Production cycle is the time span between the receipt of raw material and their conversion into finished goods. Some businesses have a longer production cycle while some have a shorter one. Duration and the length of production cycle, affects the amount of funds required for raw materials and expenses. Consequently, working capital requirement is higher in firms with longer processing cycle and lower in firms with shorter processing cycle.