Dictionary of Accounting Terms: operating cycle
operating cycle
average time period between buying inventory and receiving cash proceeds from its eventual sale. It is determined by adding the number of days inventory is held and the collection period for accounts receivable. Some industries, such as distillery and lumber, have a long operating cycle.
Dictionary of Business Terms: operating cycle
operating cycle
average time period between buying inventory and receiving cash proceeds from its eventual sale. It is determined by adding the number of days inventory is held and the collection period for accounts receivable.
