Bavarian Brew Has an Average Age of Inventory of 35

question 36

Multiple Choice

Bavarian Brew has an average age of inventory of 35 days,an average collection period of 27 days.What is the company's operating cycle?

• A) 35 days
• B) 27 days
• C) 62 days
• D) 8 days

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Definitions:

Steel

A hard, strong alloy of iron with carbon and often other elements, used widely as a structural and fabricating material.

Dumping

The practice of selling a product in a foreign market at a price lower than the production cost or domestic market price, often to gain market share or dispose of surplus.

Heckscher-Ohlin Theorem

An economic theory stating that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.