Operating cycle is measured

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Reference no: EM132037041

1. Which of the following is defined as costs associated with not having sufficient cash, inventory, or accounts receivable?

A. Net working capital costs

B. Opportunity costs

C. Shortage costs

D. Cash cycle costs

2. Which of the following is defined as the cost or forgone opportunity of using an asset already in use by the firm, or a person already employed by the firm, in a new project?

A. Net working capital cost

B. Opportunity cost

C. Shortage cost

D. Cash cycle cost

3. Operating cycle is measured as:

A. inventory turns minus average collection period.

B. inventory turns plus average collection period.

C. days' sales in inventory minus average collection period.

D. days' sales in inventory plus average collection period.

Reference no: EM132037041

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