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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. Show the Merits of residual income? Merits of residual income (RI) - Consistent or goal congruence with profit maximisation e.g. an enforced measure of profitability.
is formal planning hinder for success
Q. Examples of external failure cost The customer perspective can control performance by the assessment of external quality failure. Costs incurred after the customer has rec
Assume the population of Darwin in 50 yrs will be 2million. There will be gas related industries in the surrounding areas of Darwin. Mining activities in the Northern Territory wil
Tasks: With your chosen scenario: o Briefly describe the initial structure - set baseline o Create a strategic project plan with: A strategic project analysis
Q. Process to implement balanced scorecard? 1. A clear vision of introduction of a BSC communicated and demonstration which senior management are committed to the idea. 2. E
The strategy
Q. Divisional structures – product organisation? The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grow
Q. Define Market value added? MVA is an external measure of shareholder wealth, the market value added from one period to another. It is measured by the taking the rise in the
Write a submission to your chief executive officer of your organisation describing a strategy to improve the organisation's assets, their management, and the standard of service wh
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