The production cycle is a recurring set of business activities and related data processing operations associated with the manufacture of products. In other
hand, it refers to the period during which the objects of raw products and
materials remain in the production process, from the beginning of manufacturing through the output of a finished product. There are four activities in production
cycle, i.e. product design, planning and scheduling, production operations, and
cost accounting.
The operating cycle is the average period of time required for a business to
make an initial
outlay of cash to produce goods, sell the goods, and receive cash
in exchange for the goods. It is useful for estimating the amount of working capital that a company will need in order to maintain or grow its business.