Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.
Explanation:
In the given example,
inventory cost 40 percent
Inventory Value $400 million
Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value
.
so in the current case it will be 40% x/$400 million
Hence, Inventory Cost 160 Million
Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.
Company should focus on offering on discounts and promotions and reduce Obsolete Stock.
It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.
The procurement team should order in minimum quantities and benchmark reorder point.
Answer:
the effective rate of interest on the debt is 6.38%
Explanation:
The computation of the effective rate of interest on the debt is shown below:
Effective rate of interest is
= ($400,000 × 6%) ÷ ($400,000 × 0.94)
= $24,000 ÷ $37,600
= 6.38%
Hence, the effective rate of interest on the debt is 6.38%
It could be determined by applying the above formula so that the correct rate could come
Answer: Amy is <em>concerned </em>with her organization's i<em>nability to solve problems</em> quickly. Several <u>subordinates have complained</u> to her that they feel alienated from the management <u>making the decisions</u> about their jobs with<u> no input </u>from them.
The element that Amy should address is the Chain of command.
Explanation:
A chain of command is a system for sending inside information of organizations with strong, vertical and authoritative structures.
The continuous flow of the chain of command clearly establishes the authority, revealing this depending on who reports to whom.
We must take into account the Authority and the Unit of command. This last is very important because it states that each supervisor must inform only one superior and like this the company preserves the continuous line of authority so all employees are heard and their ideas are taken into consideration for making decisions.
Answer:
The correct answer is letter "C": It decreases the size of your principal and decreases the total cost of the loan
.
Explanation:
Down payments are the initial sums debtors pay when requesting a credit. Down payments are usually mandatory but the debtor can offer the sum voluntarily.
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<em>If the sum provided in the down payment is higher than what is requested, the amount of the principal will be lower. If the amount of the principal is lower, the total of the interest paid in the course to the loan will be lower as well, thus, the cost of the loan will be reduced.</em>
Answer:
Failing to analyze and take into account the competitor technological environment.
Explanation:
When initiating a new joint venture, a company must analyze many environments, such as cultural, organizational, financial, technological, processual, and others. In this case, it was necessary to analyze the current technological competitor environment to check the compatibility of operating systems and the cost and viability of adjusting accordingly. Nothing was done, hence the joint venture’s failure.
