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Granting credit is built into the cost of the product

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Reference no: EM131466409

Discuss why you think a company would prefer to take as long as possible before paying bills. Accounts payable is often viewed as "free credit;" however, the cost of granting credit is built into the cost of the product. Note that the operating cycle begins when inventory is purchased and the cash cycle begins with the payment of accounts payable.

Reference no: EM131466409

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