Which of the Following Will Increase the Operating Cycle

question 5

Multiple Choice

Which of the following will increase the operating cycle?

• A) The cash cycle decreases by one day but the average payment period increases by two and a half days.
• B) The days' sales in inventory decreases by one day but the average collection period increases by two days.
• C) COGS stays the same but inventory increases.
• D) All of these choices are correct.

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Definitions:

Ambient Stress

The stress experienced due to ongoing environmental factors or the general atmosphere surrounding an individual.

Adaptive Demands

Challenges or requirements that necessitate adjustment or change in behavior or thinking.

Stress-Is-Enhancing Mindset

A Stress-Is-Enhancing Mindset is the belief that experiencing stress can lead to positive outcomes, such as improved performance, growth, or well-being.

Competitor Mindset

A psychological frame of mind that focuses on striving to achieve success or victory over others in a competitive environment.