Which of the Following Is a Firm's Operating Cycle

question 32

Multiple Choice

Which of the following is a firm's operating cycle?

• A) the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product
• B) the average length of time between when a firm pays cash to purchase its initial inventory and when it receives cash from the sale of the product produced from that inventory
• C) the average length of time between when a firm originally purchases its inventory and when it sells the product produced from that inventory
• D) the average length of time between when a firm originally purchases its inventory and when it pays cash for that inventory

---

Definitions:

Variable Operating Costs

Expenses that fluctuate with the level of output or business activity.

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Intermodal Service

A transportation service that combines multiple modes of transport, such as rail, ship, and truck, to move goods efficiently from origin to destination.

Transport Buyer

An individual or entity responsible for purchasing transportation services or solutions.