The Hewitt Company has calculated that their average collection period (ACP) is 25 days. They are hoping that the new cash discounts they have implemented will reduce the ACP. After one month, they have the following data: 60% pay in 15 days and 40% pay in 30 days. How much is the change in the ACP?

Multiple Choice

• 4 days reduced

• 4 days increased

• 17 days increased

• 21 days reduced

• No change

The goal of the ABC approach for inventory management is to:

Multiple Choice

• Identify the order point for each inventory item.

• identify the best portion of inventory to sell.

• Enable the kanban system for reordering raw materials.

• Organize the inventory in the most efficient location in the warehouse.

• identify the respective portion that each group of inventory represents to the overall value.