Which of the Following Is NOT Correct

question 9

Multiple Choice

Which of the following is NOT correct?

• A) The operating cycle sometimes is longer than one year in duration.
• B) The operating cycle always is one year in duration.
• C) The operating cycle sometimes is shorter than one year in duration.
• D) The operating cycle is a concept applicable both to manufacturing and retailing enterprises.

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including the costs of raw materials, direct labor, and overhead.

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Baker's Wages

Baker's wages refer to the compensation paid to bakery workers or bakers for their labor and expertise in producing baked goods.

Prime Costs

The direct costs of manufacturing a product, which include direct materials and direct labor.