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Budgeting and the Operating Cycle
The budgeting cycle is the period between one budget and the next, whereas the operating cycle is the average length of time between when a company purchases items for inventory and when it receives payment for sale of the items.
The budgeting cycle is the period between one budget and the next, whereas the operating cycle is the average length of time between when a company purchases items for inventory and when it receives payment for sale of the items.
To prepare for this Application Assignment, review Chapter 11 of your course text, particularly Exhibit 11-2 on p. 358, which shows a diagram of a manufacturing company’s operating cycle.
To prepare
for this Application Assignment, review Chapter 11 of your course text, particularly
Exhibit 11-2
on p. 358, which shows a diagram of a manufacturing company’s operating cycle.

To complete this Application Assignment, make a diagram of your own and indicate on the diagram where each budget fits. Then, summarize why you placed each budget where you did in the operating cycle.
To complete
this Application Assignment, make a diagram of your own and indicate on the diagram where each budget fits. Then, summarize why you placed each budget where you did in the operating cycle.

Your written assignments must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate.
Your written assignments must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate.

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