The Operating Cycle

question 3

Multiple Choice

The operating cycle:

• A)Is repeated once per year for manufacturers and merchandisers.
• B)Has seven steps.
• C)Starts with using cash to purchase merchandise and ends with collecting the cash back from customers.
• D)Is longer for a retailer than for a manufacturer.

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Definitions:

User Costs

Expenses related to the use of a product or service, including maintenance, operation, and depreciation.

Property Rights

The legal rights to use, control, and dispose of property and resources.

Forest Cover

The proportion of land area covered by forests, which plays a critical role in carbon sequestration and biodiversity.

Deforestation

The clearing or thinning of forests by humans, often to make land available for agriculture, logging, or urban development.