The operating cycle for a merchandiser is the period of time it takes to sell a
ID: 2505731 • Letter: T
Question
The operating cycle for a merchandiser is
the period of time it takes to sell a unit of inventory.
the same for all companies.
most generally a year.
the time to buy, hold, sell, and collect payment for a sale.
A merchandiser will earn an operating income of exactly $0 when
gross margin equals operating expenses.
net sales equals cost of goods sold.
cost of goods sold equals gross margin.
operating expenses equal net sales
Positive operating income will result if gross margin exceeds
operating expenses
purchases
cost of goods sold
cost of goods sold minus operating expenses
Explanation / Answer
The operating cycle for a merchandiser is
Ans] the time to buy, hold, sell, and collect payment for a sale.
A merchandiser will earn an operating income of exactly $0 when
Ans] gross margin equals operating expenses.
Positive operating income will result if gross margin exceeds
Ans] operating expenses
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