The stages in the life of a transaction exposure can be broken into three distinct time periods. The first time period is the time between quoting a price and reaching an actual sale agreement or contract. The next time period is the time lag between taking an order and actually filling or delivering it. Finally, the time it takes to get paid after delivering the product. In order, these stages of transaction exposure may be identified as:

		backlog, quotation, and billing exposure.
		billing, backlog, and quotation exposure.
		quotation, backlog, and billing exposure.
		quotation, billing, and backlog exposure.