The Cash Cycle Occurs in the Following Sequence

question 18

Multiple Choice

The cash cycle occurs in the following sequence:

• A)cash, raw materials, finished goods, receivables, and cash.
• B)cash, receivables, finished goods, raw materials, and cash.
• C)cash, raw materials, receivables, finished goods, and cash.
• D)cash, finished goods, receivables, raw materials, and cash.

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Definitions:

Contribution Format

An income statement format that separates fixed and variable costs to show the contribution margin.

Contribution Format

A type of income statement that separates variable costs from fixed costs, highlighting the contribution margin.

Direct Manufacturing Cost

Costs that are directly attributable to the production of goods, such as labor and materials.

Indirect Manufacturing Costs

Costs associated with manufacturing that are not directly related to the physical production of goods, such as maintenance, supervision, and utilities.