Decrease the cash cycle-decrease inventory turnover rate

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Reference no: EM132040333

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:

lengthen the accounts receivable period.

decrease the cash cycle.

decrease the inventory turnover rate.

Reference no: EM132040333

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