Which of the Following Will Increase the Operating Cycle

question 43

Multiple Choice

Which of the following will increase the operating cycle?

• A)The cash cycle decreases by one day but the average payment period increases by two and a half days.
• B)The days' sales in inventory decreases by one day but the average collection period increases by two days.
• C)COGS stays the same but inventory increases.
• D)All of these will increase the operating cycle.

Understand the concept and application of job-order costing in manufacturing environments.

Calculate predetermined overhead rates for production departments based on different bases (machine-hours, direct labor-hours).

Apply overhead costs to jobs using predetermined overhead rates.

Calculate the total cost of a job inclusive of direct materials, direct labor, and applied overhead.

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Definitions:

"City Upon A Hill"

A metaphor derived from a sermon by Puritan leader John Winthrop, emphasizing the idea that the colony of Massachusetts should serve as a model of righteousness and Christian virtue for the world.

Puritans

A group of English Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its "Catholic" practices.

Mid 17th Century

A period that roughly spans from the year 1630 to 1669, marking significant historical, cultural, and political changes worldwide.

Economic Independence

A condition in which an individual, region, or country has sufficient resources to support itself without relying on external assistance.