Which Statement Is True Concerning the Focus of Expansion

question 18

Multiple Choice

 Which statement is true concerning the focus of expansion?

• A) It always occurs at the point you are fixated on.
• B) It always occurs at the point you are moving toward.
• C) It continues in the same direction once established.
• D) It always contains the fastest flow of information.

---

Definitions:

Operating Cycle

The operating cycle is the duration of time that takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Accounts Receivable

Outstanding payments due to a firm from its customers for delivered goods or services awaiting payment.

Cost of Goods Sold

The total direct costs attributed to producing goods, including materials and labor, which are sold during a certain period.

Total Asset Turnover

A financial ratio that measures a company’s effectiveness in using its assets to generate sales revenue.