Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Manufacturing historically produced products that were held in inventory until they could be sold to a customer. The firm is now changing its policy
ABC Manufacturing historically produced products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and only producing a product when it receives an actual order from a customer. All else equal, this change will:Increase the operating cycle. Lengthen the accounts receivable period. Shorten the accounts payable period. Decrease the cash cycle. Decrease the inventory turnover rate.
ABC Manufacturing historically produced products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and only producing a product when it receives an actual order from a customer. All else equal, this change will:Increase the operating cycle. Lengthen the accounts receivable period. Shorten the accounts payable period. Decrease the cash cycle. Decrease the inventory turnover rate.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started