Answer:
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
Explanation:
Inventory turnover will be determined as :
Inventory turnover = Annual sales ( at cost ) / Inventory value
Annual sales this year = $72million
Inventory turnover = 8 times
Therefore , Inventory value of current year = $72/8 =$ 9 MILLION
If annual sales ( at cost ) increases by 25%, Inventory value also has to increase by 25% to maintain the same inventory turnover ratio next year
Therefore , increase in average inventory value required = 25% of $9 million = $2.25 million
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
Answer:
The correct answer is: the cost of it.
Explanation:
To begin with, knowing that planning, organizating, controling and directing are the basis of an structured company in order to achieve efficiently those there is a cost that has to be done, therefore that the major drawback of becoming more structured in the company is the cost of doing it, due to the fact that creating documents and teaching every one how to use it and more, the costs of the company will increase as well as the company will become more structured.
Answer:
C. inefficiences may be concealed in the past performance.
Explanation:
A major drawback of using historical results for judging current performance is that inefficiences may be concealed in the past performance.