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Q. Explain about Inventory Turnover Ratio ?
Inventory Turnover Ratio: - Definite items of inventory are slow moving. It signifies that their consumption is quite slow and capital remains locked up in such items for a long period. As a consequence carrying costs continue to incur on such items. Slow moving items are able to be identified with the help of inventory turnover ratios.
Inventory Turnover Ratio (in times) = Cost of Goods Sold / Average Stock
Define the meaning of objective - financial management The term objectives offers a normative framework. That is the focus in financial literature is on what a firm must try to
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Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the
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