A. A shorter Operating Cycle is undesirable, whereas a shorter Cash Conversion Cycle is desirable.

B. The Cash Conversion Cycle (net operating cycle) is the number of days each net input dollar is tied up in the production and sales process before it is converted into cash through sales to customers, that is the days needed to sell inventory plus the days needed to collect receivables and minus the days the company can delay paying its bills (without paying interest).

C. The Operating Cycle is the average number of days it takes to turn raw materials into cash from sales.