The Proper Order of Events for the Operating Cycle Is

question 33

Multiple Choice

The proper order of events for the operating cycle is:

• A)input serving period, accounts receivable period, inventory period, quotation period.
• B)quotation period, accounts receivable period, inventory period, input servicing period.
• C)quotation period, input servicing period, inventory period, accounts receivable period.
• D)accounts receivable period, input servicing period, quotation period, inventory period.

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Definitions:

Planning Horizon

The future time period over which plans and strategies are developed and analyzed.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected costs.

Quantity Purchased

The total amount of a product that a consumer or company acquires.

Cost Purchased

The total price paid to acquire goods or services, including the purchase price and any additional charges necessary to obtain the asset.