The Following Statements Are True Regarding the Operating Cycle of a Merchandising

question 15

Multiple Choice

The following statements are true regarding the operating cycle of a merchandising company except:

• A)The operating cycle begins with the purchase of merchandise.
• B)The operating cycle is shortened by credit sales.
• C)The operating cycle ends with the collection of cash from the sale of merchandise.
• D)The operating cycle can vary in length among different merchandising companies.
• E)The operating cycle sometimes involves accounts receivable.

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Definitions:

Clearance Priced

Items sold at a significant discount to clear inventory, often due to overstock or the discontinuation of specific products.

Demand Level

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Third-Shift

The night shift or graveyard shift in a 24-hour operation, typically running from late evening to early morning.

Expansion Plans

Strategies and approaches for growing a company's business, including entering new markets or increasing product lines.