Which Combination of Ratios Describes the Length of the Operating

question 93

Multiple Choice

Which combination of ratios describes the length of the operating cycle?

• A)Days in the Selling Period + Days in the Collection Period
• B)Days in the Collection Period + Days in the Payment Period
• C)Days in the Collection Period + Days in the Selling Period + Days in the Payment Period
• D)Days in the Payment Period + Days in the Selling Period

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Definitions:

Revenue Variance

The difference between actual revenue earned and the expected revenue, often analyzed for budgeting and performance assessment purposes.

Containers Refurbished

The process of cleaning, repairing, and restoring used containers to a condition suitable for reuse, extending their lifecycle.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for better budgetary control and analysis.

Actual Results

The real outcomes achieved by a business, such as actual sales, expenses, and profit, as opposed to forecasts or budgeted figures.