The Operating Cycle for a Merchandiser That Sells Only for Cash

question 27

Multiple Choice

The operating cycle for a merchandiser that sells only for cash moves from:

• A) Purchases of merchandise to inventory to cash sales.
• B) Purchases of merchandise to inventory to accounts receivable to cash sales.
• C) Inventory to purchases of merchandise to cash sales.
• D) Accounts receivable to purchases of merchandise to inventory to cash sales.
• E) Accounts receivable to inventory to cash sales.

---

Definitions:

Highly Variable

Describes processes or systems subject to high levels of change or fluctuation, often challenging to predict or manage.

Pull Processes

A production strategy where products are only made in response to demand, minimizing inventory levels and reducing waste.

Customer Demand

The desire and willingness of consumers to purchase goods or services at a given price.

Available Capacity

The maximum amount of work or output that a system can produce or handle in a given period without additional resources.