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Explain the following term/concept: Production Cycle

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Question

Explain the following term/concept:

Production Cycle

Short/Brief Note
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Solution

The process of converting raw material into finished goods is called the production cycle. If the period of the production cycle is longer, then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.

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2021-2022 (March) Set 1

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