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The Operating Cycle Is the Time Span Required for a Business

question 96

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The operating cycle is the time span required for a business to repay its long-term liabilities.


Definitions:

Price Of Labor

The compensation (wages, salaries, and benefits) paid to employees for their work or services.

Isocost

A line representing all combinations of a firm’s inputs that have the same total cost.

Total Cost

The total of constant and fluctuating expenses involved in the creation of products or services.

Isocost Line

a graphical representation in economics showing all possible combinations of inputs that cost the same amount for a firm.

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