Which One of These Actions Will Increase the Operating Cycle

question 41

Multiple Choice

Which one of these actions will increase the operating cycle? Assume all else held constant.

• A) Decreasing the payables period
• B) Decreasing the receivables turnover rate
• C) Increasing the payables period
• D) Decreasing the average inventory level
• E) Increasing the inventory turnover rate

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Definitions:

Hypothalamus

A small forebrain structure, located just below the thalamus, that monitors three pleasurable activities—eating, drinking, and sexual behavior—as well as emotion, stress, and reward.

Parietal Lobes

Structures at the top and toward the rear of the head that are involved in registering spatial location, attention, and motor control.

Frustration-Aggression Hypothesis

A psychological theory suggesting that frustration often leads to aggressive behavior.

Aggression

Social behavior whose objective is to harm someone, either physically or verbally.