Net Operating Cycle (NOC) can be defined as sum of:

CS Executive · Financial and Strategic Management · PYQS · June 2021
Net Operating Cycle (NOC) can be defined as sum of:
(A) Raw Material, W.I.P. and Finished Goods Conversion period
(B) Raw Material, W.I.P., Finished Goods and Receivables Conversion period
(C) Inventory Plus Receivables Conversion period minus Deferral period
(D) None of the above

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Working Capital Management

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