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
CA Inter
★ 13K+
22-Feb-20 18:49
14
Answers (7)
Yes
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
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
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
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
CA Inter
★ 13K+
22-Feb-20 19:57
Yes might be changed
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.