Lamberton Manufacturing Company has just completed its master budget. The budget indicates that the company's operating cycle needs to be shortened. Thus, the company will likely attempt:

Question

Quizplus · Accepted Answer

By tightening credit policies, Lamberton Manufacturing Company can reduce the time between making a sale and receiving payment, which will shorten the company's operating cycle. This will enable the company to operate more efficiently without the need for larger inventories or reducing cash discounts for prompt payment.

Lamberton Manufacturing Company Has Just Completed Its Master Budget