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Q. What do you mean by Inventory days?
(Average inventory / Cost of sales) x 365 days
Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories + closing inventories) / 2. This ratio tells how long the inventory stays in the company before it is sold. The lower the ratio the more efficient company is trading, however this may result in low levels of inventories to meet demand. A lengthening inventory period may indicate a slowdown in trade and an excessive build up of inventories, resulting in additional costs.
Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cos
1. Unions quite frequently oppose the time study because the accuracy of time study is overly dependent upon the skill and judgment of the time study man. The time
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Q. Behaviour of divisional senior executives? EVA can affect the behaviour of divisional senior executives in the following ways. 1. They would concentrate their investment
Q. illustrate about Return on capital employed? Return on capital employed (ROCE) = (Profit before interest and tax (PBIT) / Capital employed) x 100% RO
At this time, take a step back and clear your head. Spend a few moments in deeper thought about yourself, in a self-evaluative manner. Then, describe how you will incorporate what
Recommendation for future strategies, Strategic Management. Conclusion
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Payback period = total cost of investment / estimated annual revenue
explain strategy as an organisational process
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