Your Firm Currently Has an Operating Cycle of 64 Days

question 109

Multiple Choice

Your firm currently has an operating cycle of 64 days.You are analyzing some operational changes which are expected to decrease the trade receivables period by 3 days and decrease the inventory period by 2 days.The trade payables turnover rate is expected to increase from 7 to 9 times per year.If all of these changes are adopted,what will your firm's new operating cycle be?

• A)47 days.
• B)51 days.
• C)54 days.
• D)57 days.
• E)59 days.

Grasp the concept that standard costs should be revised in response to labor rate changes or new union contracts.

Identify standards as performance goals for evaluating and controlling operations.

Define variance and understand its role in cost control and performance evaluation.

Recognize the significance of financial reporting systems guided by the principle of exceptions.

---

Definitions:

Phylum Cnidaria

A phylum of mostly marine animals that includes corals, jellyfish, and sea anemones, characterized by their distinctive stinging cells called cnidocytes.

Classes

Categories in taxonomic classification that rank above orders and below phyla, or divisions in grouping organisms based on shared characteristics.

Characteristics

distinguishing traits, qualities, or properties of an object, person, or thing.

Statocysts

Sensory organs found in invertebrates that help in detecting gravity and spatial orientation.