The Operating Cycle of a Merchandising Company Ordinarily Is Shorter

question 207

True/False

The operating cycle of a merchandising company ordinarily is shorter than that of a service company.

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Definitions:

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.