Asked by Mckenna Grimm on May 02, 2024
Verified
The elapsed time beginning with the initiation of production and ending with the cash collection of the receivables from the sale of the product refers to the company's production cycle.
Production Cycle
The entire process of producing goods, from the acquisition of raw materials to the final product, within a company.
Cash Collection
The process of receiving and managing payments from customers or clients for goods or services provided.
- Identify the operational cycles of a company, including production and cash collection cycles.
Verified Answer
CF
charis fowlerMay 04, 2024
Final Answer :
False
Explanation :
The correct term for the elapsed time beginning with the initiation of production and ending with the cash collection of the receivables from the sale of the product is the company's operating cycle, not the production cycle. The production cycle specifically refers to the period from the start of production to the end of production of goods.
Learning Objectives
- Identify the operational cycles of a company, including production and cash collection cycles.