ABC historically acquired products that were held in inventory until they could be sold to a customer.The firm is now changing its policy and will only acquire a product when it receives an actual order from a customer.All else equal,this change will

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By acquiring products only when there is an actual order from a customer, ABC will reduce the time between paying suppliers and receiving cash from customers, thus reducing the cash cycle. The operating cycle, accounts payable period, accounts receivable period, and inventory turnover rate may be affected by this change, but the most direct impact would be on the cash cycle.

ABC Historically Acquired Products That Were Held in Inventory Until