Assume a Firm's Production Process Requires an Average of 80

question 132

Multiple Choice

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

• A) 110 days
• B) 130 days
• C) 190 days
• D) 270 days

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Definitions:

Drivelines

Components, including the driveshaft, axles, CV joints, and differential, that transmit power from the engine to the wheels of a vehicle.

Torque Transfer

The process of transferring rotational force from one part of a mechanical system to another, allowing for movement and work to be done.

U-joints

Universal joints, flexible couplings that allow different parts of a drivetrain to pivot or rotate, accommodating changes in angle or alignment.

ASE Certification

A certification granted by the National Institute for Automotive Service Excellence to professionals in the automotive repair and service industry.