True of inventory level

Assignment Help Financial Management
Reference no: EM131188347

Which of the following is true of inventory level? A. A manufacturing manager would keep raw materials inventories low to ensure use of latest materials in production process. B. A marketing manager would like to have smaller inventories of finished products to ensure production of goods as per customer specification. C. A purchasing manager would purchase higher inventories when prices are low and lower inventories when prices are high irrespective of inventory requirement. D. A financial manager would keep inventory levels low to ensure that the ?firm’s money is not unwisely invested in excess resources.

Reference no: EM131188347

Questions Cloud

Indicate whether variance is favourable or unfavourable : Winky Wink CC's standard and actual costs per pillow for December 20.16, during which 750 pillows were actually produced, From the foregoing information, compute the following variances. Indicate whether the variance is favourable (F) or unfavourable..
Liquidating dividend and the firm will cease to exist : DM Inc. is expected to pay dividends of $150 per share at the end of one year and $150 at the end of the second year. The dividend in the second year is a liquidating dividend and the firm will cease to exist. Investors require a 13% return on invest..
Discuss the deductibility-preparing partnership agreement : Discuss the deductibility or not of the following amounts: Interest paid in respect of an overdraft used to purchase additional equipment used in the business. $1,200 paid to lawyers for advising and preparing a partnership agreement. In a chart of a..
Loan amortization schedule-cash flows of different options : Q LTD is a telecommunication services provider looking to expand to a new territory Z; it is analyzing whether it should install its own telecom towers or lease them out from a prominent tower-sharing company T-share, Inc. Loan amortization schedule...
True of inventory level : Which of the following is true of inventory level?  A manufacturing manager would keep raw materials inventories low to ensure use of latest materials in production process.
What is the companys cost of equity : Chandeliers Corp. has no debt but can borrow at 6.3 percent. The firm’s WACC is currently 8.1 percent, and the tax rate is 35 percent. What is the company’s cost of equity? If the firm converts to 50 percent debt, what will its cost of equity be?
Required in order to meet the minimum profit goal : A private equity fund is considering investing in a company, which wants to produce a new product. The variable cost per unit is estimated at $9.51, the sales price would be set at $19.45, and fixed costs are estimated at $1202.28. The private equity..
Both stocks have equal reward-to-risk premiums : Stock A has a beta of 1.09 while Stock B has a beta of .76 and an expected return of 8.2 percent. What is the expected return on Stock A if the risk-free rate is 4.6 percent and both stocks have equal reward-to-risk premiums? 11.73 percent 8.07 perce..
About the accounting firm : Your accounting firm, Pennypacker & Vandelay, LLC, has been asked by the Chairman of Harris Memorial Hospital and Harris Community Foundation to attend the annual board meeting to present the report of the Independent Auditors. The managing partner o..

Reviews

Write a Review

Financial Management Questions & Answers

  Planned at the start although the ultimate design calls

A bi-level mall is under construction. Installation of only 10 escalators is planned at the start although the ultimate design calls for 16. The question arises whether to provide necessary facilities that would permit the installation of the additio..

  How should a business use working capital analysis

How should a business use working capital analysis? Which is more important to the short-term lender: the stock of cash or the flow of cash? Is it possible in today's business to operate with no current liabilities?

  Annual after-tax cash flow received by the investor

A property, if sold today, will provide the equity investor with $125,000 in cash flow after taxes. If the property is held, the annual after-tax cash flow received by the investor will be $12,000 per year for the next 10 years. Should this investor ..

  Firms common size income statement

If a firm’s common size income statement shows that the earnings after tax percentage is too low, the firm may have spent too much money:

  Raised the maximum amount of short-term funds

The Nelson Company has $1,035,000 in current assets and $450,000 in current liabilities. Its initial inventory level is $360,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term..

  Using net present value profile to compare project

You are using a net present value profile to compare Project A and B, which are mutually exclusive. Which one of the following statements correctly applies to the crossover point between these two?

  Who intend to begin saving money for retirement

David and William are brothers who intend to begin saving money for retirement when each is exactly 25. Each brother intends to save $3,600 per year before taxes and invest the money to accumulate wealth and to supplement his income in retirement. Ho..

  What is the preferred stock required rate of return

Brown's Founders has preferred stock outstanding which pays a dividend of $5 at the end of each year. The preferred stock sells for $60 a share. What is the preferred stock's required rate of return?

  Consider european call option on non-dividend-paying stock

Consider a European call option on a non-dividend-paying stock where the stock price is $52, the strike price $50, the risk-free rate is 5%, the volatility is 30%, and the time to maturity is one year.  What is the value of the option to the buyer if..

  What are the projects cash flows

Your firm is considering replacing a machine that originally cost $250,000 with a new machine costing $290,000. It will also cost $10,000 to install the new machine. The new machine has a much higher output and would increase sales by $100,000 each y..

  Since limiting tax liability is goal of estate planning

Since limiting tax liability is a major goal of estate planning, there are various strategies that an estate planner can employ. In this discussion you explore these strategies and their impact on estate plans. Choose one strategy to limit estate tax..

  Current liabilities-change in net working capital

The 2014 balance sheet of Steelo, Inc., showed current assets of $2,930 and current liabilities of $1,390. The 2015 balance sheet showed current assets of $2,945 and current liabilities of $1,635. What was the company’s 2015 change in net working cap..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd