Trend Foods Distributes Its Products to More Than 100 Restaurants

question 12

Multiple Choice

Trend Foods distributes its products to more than 100 restaurants and delis. The company's collection period is 32 days, and it keeps its inventory for 10 days. What is Trend's operating cycle?

• A) 22 days
• B) 32 days
• C) 42 days
• D) None of the above

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Definitions:

Interest-Rate Cost-Of-Funds

Represents the interest rate that banks or other financial institutions pay for the funds that they use in their operations, including deposits and loans from other institutions.

Perfectly Elastic

A term used in economics to describe a situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Expected Rates

Anticipated figures or percentages, often pertaining to finance, such as interest rates or returns on investment.

MU/P

The ratio of marginal utility to price, used to measure the additional satisfaction gained per unit of currency spent.