BP has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days.Based on this information, BPs operating cycle is ________ days.
A)95
B)85
C)75
D)65
E)none of the above

Question

Quizplus · Accepted Answer

The operating cycle is calculated by adding the average collection period and the average age of inventory: 25 days + 70 days = 95 days.

BP Has a Cash Conversion Cycle of 80 Days, an Average