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Explain How ES, EF, LS, and LF Are Calculated in CPM

question 35

Essay

Explain how ES, EF, LS, and LF are calculated in CPM.


Definitions:

Operating Cycle

The time period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Merchandising Company

A company that purchases and sells tangible inventory to customers without changing its form.

Service Company

A business entity that provides intangible products or services to consumers or other businesses.

FOB Shipping Point

A term used in shipping that indicates that the buyer is responsible for the cost and risk of transport as soon as the goods are loaded onto the shipping vehicle.

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