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Hameed Alumany
من قبل Hameed Alumany , Senior Cost / Management Accountant , Chagzhou Group

the operating cycle means the time that it takes for the company to buy goods, sell them, and receive the cash for the sold good

 

example: a company bought goods and sold it after 20 days on account, after 30 days it collected their receivables

operation cycle would be 20 days + 30 days = 50 days

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