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.

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Definitions:

Battery-Powered

Devices or vehicles that operate using electricity stored in batteries as their primary source of energy.

Task Time

The duration required to complete a specific task, often used in scheduling and productivity analysis.

Beverage Mixers

Ingredients or products mixed with alcoholic or non-alcoholic drinks to enhance flavor, such as tonics, sodas, or juices.

Idle Time

Periods when resources such as machinery or labor are available but not in use, often leading to inefficiencies and increased costs.