Which of the following statements is incorrect? Group of answer choices
If carrying costs are larger than shortage costs, then the firm will maximize value by adopting a more restrictive strategy.
Days sales outstanding (DSO) estimates how long it takes on average for the firm to collect its outstanding accounts receivable balances; also called the Average Collection Period (ACP). All the answers are correct except one.
Current assets are cash and other assets that the firm expects convert into cash in a year or less.
The operating cycle is the length of time between the cash outflow for materials and the cash inflow from sales.