Which of these is not a way in which the length of the operating cycle can be reduced?
A) Reduce the time taken to pay creditors.
B) Impose tighter controls on debtors to encourage prompt payment.
C) Cut back on the average time inventory is held.
D) None of the above, i.e. all are ways in which the length of the operating cycle can be reduced.

Question

Quizplus · Accepted Answer

Reducing the time taken to pay creditors does not shorten the operating cycle; it affects cash flow but not the cycle length.

Which of These Is Not a Way in Which the Length