A firm wants to reduce its cash conversion cycle sharply.  Which of the following actions should it take?     a. The company increases its average inventory without increasing its sales.     b. The company increases its DSO (days sales outstanding).     c. The company increases its average accounts payable without reducing its sales.     d. The company sells an issue of long-term bonds and uses the proceeds to buy back some of its common stock.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.