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Commerce · Q824

Costing

Graduate and Post Graduate · Commerce · question 824

Q824

Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

A.
Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
Answer
B.
Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
C.
Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion
D.
Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period

Answer: Option A

Solution

Answer: Option A
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