The operating cycle of a manufacturer is the length of time between the
A)purchase of raw materials and the sale of the goods.
B)sale of the goods and the collection of any outstanding receivables from the sale of the product.
C)purchase of raw materials and collection of any outstanding receivables from the sale of the product.
D)purchase of raw materials and the production of goods.

Question

Quizplus · Accepted Answer

The operating cycle of a manufacturer is the period from the purchase of raw materials to the collection of receivables from the sale of the product, encompassing the entire process from production to sales and finally to cash collection.

The Operating Cycle of a Manufacturer Is the Length of Time