Credit Standards – II
At any point of time the company would be interested in examining the effect of change in credit standards. This is done by comparing the profitability generated by lowering down the credit standards...
View ArticleCredit Standards & Credit Terms
We may take following approach in assessing the effects of lowering down the credit standards: Determine find out the profitability of additional sales Determine increase in bad debt losses, collection...
View ArticleCredit Analysis -1
No Company does blindly sell on credit to every customer approaching it. The company has to evaluate the capability of the customer and his strengths to fulfill the promise of paying the bills in time....
View ArticleCredit Analysis -3
We are talking Credit Analysis. The cost in terms of time and money resources involved in such experience would outweigh the benefits. But at the same time the company has to come o conclusion and...
View ArticleShort Term Investments
A cash management imperative is that idle excess balances represent an opportunity cost to the firm. To ignore investment possibilities, even for one day, is inconsistent with the objective of managing...
View ArticleIssues and Approaches to Forecasting
An important question in short-term cash forecasting is what the length of the forest period to be forecast should be. This depends critically on the volume of the firm’s cash inflows and outflows. If...
View ArticleIssues and Approaches to Forecasting -1
We are talking issues and approaches to forecasts. The most common approach to short-term cash forecasts is the receipts and disbursement approach. This method minutely traces the movement of cash and...
View ArticleCASH MANAGEMENT IN PRACTICE-1
Concentration banking is the most popular technique employed by business firms to intensify cash inflows. Usually the local sales office or branch of the company performs this function. Many of the...
View ArticleInventory Management-2
MOTIVE FOR HOLDING ENVENTORIES It is possible to identify three major movies for holding inventories. The transaction motive peoples a business to maintain inventories so that there are no bottlenecks...
View ArticleINVENTORY RELATED BENEFITS AND COSTS
As indicated earlier inventories include stocks of raw materials, semi-manufactured or semi-processed goods or work-in-process and finished products. While trading businesses carry inventories of the...
View Article
More Pages to Explore .....