Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Cost of Holding Inventories?
The holding of inventories engages blocking of a firm's funds. The various risks as well as costs in holding inventories are as below:
(1) Capital Costs: - Maintaining of inventories consequence in blocking of the firm's financial resources. The firm has thus to arrange additional funds to meet the cost of inventories. The funds possibly arranged from own resources or from outsiders. However in both cases the firm acquires a cost. In the previous case there is an opportunity cost of investment while in the later case and the firm has to pay interest to outsiders.
(2) Storage and Handling Costs: - Holding of inventories as well involves costs on storage as well as handling of materials. The storage costs include:
(i) Rent of the Godown
(ii) Insurance charges and so on.
(3) Risk of Price Decline: - There is forever a risk of reduction in the prices of inventories by the suppliers on holding inventories. This may be because of increased market supplies and competition or general depression in the market.
(4) Risk of Obsolescence: - The inventories may become obsolete due to change in requirements, improved technology, change in customer's tastes etc.
(5) Risk Deterioration in Quality: - The quality of the materials may as well deteriorate while the inventories are kept in stores.
The option features embedded in many bonds and fixed-income securities have made the binomial interest rate tree approach a valuable model for pricing debt. Binomial
What are the main classes of institutions that issue bonds in the USA? There are three major classes of institutions which issue bonds in the USA: national governments, local g
CLASSIFICATION OF SOURCES OF FINANCE In the market, there are several sources of finance, with conflicting risk characteristics and with conflicting cost structures. Numerous m
What is the meaning of Deviations Deviations must be recorded and investigated regardless of the amount involved and then assess whether deviations are isolated departures or i
Public Financial Statements of a Company The final exercise is the valuation of a publicly held company's equity. You must base your valuation on the company's public financia
Q. Show the Graphic Presentation of Net Income Approach? Graphic Presentation of Net Income Approach: - Net Income approach is described graphically as follows: In the
Scenario: ABC Company sells widgets in three varieties (blue, red, and yellow) but has lost money for the past three years. Competitive intelligence shows the Company's products
Is the net income of a year the money the company made that particular year or is it a number whose significance is quite doubtful? The net income of a year is not money that a
Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr
Explain how Eurocurrency is created. Answer: The center of the international money market is the Eurocurrency market. A Eurocurrency is a time deposit of money in an internationa
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd