Define the operating cycle.


Define the operating cycle.


Inventory comprises items such as raw material, work in progress, or finished goods bought and manufactured to earn business income. The existence and development of a business depend upon the quality of inventory produced.

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The operating cycle is a chain of events that starts from purchasing inventory in the form of raw material or work in progress or finished goods,...

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Operating Cycle in Accounting: Definition & Formula


Chapter 22 / Lesson 42

Explore the operating cycle in accounting. See the operating cycle definition and understand how to calculate the operating cycle. Find the operating cycle formula.

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