The Operating Cycle Is the Average Days' Inventory on Hand

question 15

True/False

The operating cycle is the average days' inventory on hand minus the average number of days to collect credit sales.

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Definitions:

Salespeople

Professionals who are involved in selling products or services to customers.

Law of Averages

The principle that over a large number of events, outcomes will roughly equal the probability of occurrence over time.

Prospecting

The process of identifying and reaching out to potential customers for a business's products or services.

Direct Mail

A marketing strategy that involves sending physical promotional materials directly to potential or existing customers.