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Operating cycle

Can a business can have more than 1 operating cycle for different products? Can it alter the operating cycle whenever they feel so?


Raviteja Kusumanchi

Raviteja Kusumanchi

CA Inter

13K+

22-Feb-20 18:49

14

Answers (7)

Yes


jsome jsome

jsome jsome

CA Inter

525

22-Feb-20 19:09

For example in an alcohol manufacturing companing.....the operating cycle may take 3 to 5 years .......but for beer the operating cycle is different


jsome jsome

jsome jsome

CA Inter

525

22-Feb-20 19:10

When can the compan change the operating cycles ? Because it might keep changing due to various reasons


Raviteja Kusumanchi

Raviteja Kusumanchi

CA Inter

13K+

22-Feb-20 19:25

Operating cycle is specific for a product how can u increase or decrease operating cycle


jsome jsome

jsome jsome

CA Inter

525

22-Feb-20 19:34

Suppose the company fixes the operating cycle to be 100 days and after few months suddenly due to change in other factors it is considered to be 80 . Can it change now?


Raviteja Kusumanchi

Raviteja Kusumanchi

CA Inter

13K+

22-Feb-20 19:57

Yes might be changed


jsome jsome

jsome jsome

CA Inter

525

22-Feb-20 20:00

Operating Cycle is determined for each business separately. A company can have more than one Operating Cycle. But for most practical purposes, an average can be used.


Suraj Lakhotia

Suraj Lakhotia

Admin

22-Feb-20 20:13