ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Organization of inventory can improve cash flow
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Explanation:
Detailed explanation-1: -Improving inventory turnover through proper inventory control will help reduce the COGS, positively impacting cashflow and resulting in more cash in the bank.
Detailed explanation-2: -Key Takeaways. Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and cash spent signifies outflows. The cash flow statement is a financial statement that reports on a company’s sources and usage of cash over some time.
Detailed explanation-3: -An increase in inventory signals that a company spent more money on raw materials. Using cash means the increase in the inventory’s value is deducted from net earnings. A decrease in inventory would be added to net earnings.
There is 1 question to complete.