Asked by Isabel Sanchez on May 26, 2024
Verified
The operating cycle of a merchandiser is
A) always one year in length.
B) generally longer than it is for a service company.
C) about the same as for a service company.
D) generally shorter than it is for a service company.
Operating Cycle
The duration of time it takes for a company to buy inventory, sell it to customers, and collect the cash from sales.
Merchandiser
An individual or company involved in the wholesale purchase and retail sale of goods for profit.
- Identify the various components of the operating cycle and the costs associated with operations in both merchandising and service-oriented firms.
Verified Answer
GB
Guadalupe BenitezMay 28, 2024
Final Answer :
B
Explanation :
The operating cycle of a merchandiser is generally longer than that of a service company because it includes not only the time to provide a service but also the time to purchase inventory, sell it, and collect the cash from customers.
Learning Objectives
- Identify the various components of the operating cycle and the costs associated with operations in both merchandising and service-oriented firms.
Related questions
Indicate Which One of the Following Would Appear on the ...
Which of the Following Statements Regarding the Operating Cycle of ...
For a Merchandising Company All Accounts That Affect the Determination ...
The Steps in the Accounting Cycle Are Different for a ...
Freight Terms of FOB Destination Means That the Seller Pays ...