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Operating Cycle and Breakeven Point

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Choose the correct answer.

1. The operating cycle measures the time between acquiring and selling inventory.
a) True
b) False

2. If a firm's sale price per unit decreases, the firm's operating breakeven point will
a) Decrease
b) Increase
c) Remain unchanged
d) Change in an undetermined direction

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Solution Summary

This solution identifies the correct answer on operating cycle and a firm's operating breakeven point and justifies why.

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Hi,

Here is the answer:

Answer:

1. b) False

Reason: the operating cycle ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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