What are two ways lean budget guardrails guide value stream investment decisions?

1 answer:

6 0

Horizon-based investment guidance applying capacity allocation to enhance value and the reliability of the solution approving important projects. SAF offers Lean budgeting techniques that do away with the overhead associated with cost accounting and typical project-based funding.

Through the application of Lean budget guardrails and the distribution of value stream budgets, LPM maintains the necessary levels of control in this model. A company's public estimations of its current-quarter and long-term profits prospects are known as guidance. Investors and analysts.

Modify their expectations for a company's value price based on the earnings guidance. Guidance is defined as direction, counsel, or anything that instructs.

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Answer:

This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

Explanation:

The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.

This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.

The formula for calculating the accounts receivable turnover ratio is as follows:

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.

The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

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