The First Step in the Working Capital Cycle Process Is

question 92

Multiple Choice

The first step in the working capital cycle process is to

• A) order inventory.
• B) purchase or produce inventory for sale.
• C) receive inventory.
• D) sell the inventory for cash or credit.

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Definitions:

Setup Costs

Expenses associated with preparing equipment, systems, or processes for a new production run or activity.

Lead Time

The time interval from when an order is placed until it is received and available for use or sale.

MPS

Master Production Schedule, a plan for individual commodities to be produced in each time period, such as production, staffing, inventory.