Question

For which step in the Operating cycle is there a difference between manufacturers and retailers?

A) Fourth
B) Third
C) Second
D) First

Answer 1

C) Second. Manufacturers and retailers have a difference in the second step of the operating cycle.

Step-by-step explanation:

In the operating cycle of a business, there is a difference between manufacturers and retailers in the second step. The second step is the purchase of inventory, where manufacturers acquire raw materials and components to produce goods, while retailers purchase finished goods from manufacturers to sell to customers.

Manufacturers create the products from scratch, using raw materials, labor, and machinery. On the other hand, retailers focus on sourcing and distributing finished goods to customers. This difference in the second step of the operating cycle distinguishes the roles and functions of manufacturers and retailers within the business supply chain.