ABC Manufacturing historically produced products that were held in inventory until they could be sold to...

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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: A. increase the operating cycle. B. lengthen the accounts receivable period. C. shorten the accounts payable period. D. decrease the cash cycle. E. 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: A. increase the operating cycle. B. lengthen the accounts receivable period. C. shorten the accounts payable period. D. decrease the cash cycle. E. decrease the inventory turnover rate.

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