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Management Short Question | Gkseries

Question

If raw materials are in store for 2 months, processing time 2½ months, finished goods remain in store for 15 days, debtors are allowed 60 days’ credit and credit received from suppliers of raw material is one month, the operating cycle period is :

A 7 months
B 6 months
C 6½ months
D 5 months

Answer & Explanation

Answer: 6 months