The operating cycle of a merchandising company is
A)always one year in length.
B)generally longer than that of a service company.
C)about the same as that of a service company.
D)generally shorter than that of a service company.

Question

Quizplus · Accepted Answer

Merchandising companies typically have a longer operating cycle than service companies because they must purchase inventory, hold it until it can be sold, and then sell it, which adds time to their cycle compared to service companies that do not have inventory.

The Operating Cycle of a Merchandising Company Is