The __________of a firm is the amount of time that elapses from the point when the firm inputs material and labor into the production process to the point when cash is collected from the sale of the finished product that contains these production inputs.
A) average age of inventory
B) average collection period
C) operating cycle
D) cash conversion cycle

Question

Quizplus · Accepted Answer

The operating cycle is the time period between the acquisition of inventory and the collection of cash from receivables. It includes the time taken to sell inventory and collect cash from sales.

The __________Of a Firm Is the Amount of Time That