BP Has an Operating Cycle of 120 Days, an Average

question 69

Multiple Choice

BP has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. Based on this information, BPs average age of inventory is ________ days.

• A) 80
• B) 50
• C) 90
• D) 70

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Definitions:

Share Of Customer

The percentage of an individual customer's purchasing that a company captures in the products and services it offers.

Purchase Dollars

The amount of money spent by consumers or organizations on acquiring goods or services.

Company's Products

The goods or services offered by a company to its customers, representing the company's brand and value proposition in the market.

Iterative

A process characterized by repeating cycles of operations or stages with the aim of refining and improving a product or outcome with each iteration.