GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the lower the cost of raw materials the less money the business will have to spend on advertising
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it allows the business to keep its costs as low as possible enabling it to make a profit
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the higher the cost of raw materials the more profit the business will make
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Low costs will improve cash flow
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Detailed explanation-1: -It is important to understand how raw materials costs work because they are constantly changing. Supply and demand affect the cost of raw materials, so companies should consider this when making purchases. Many raw materials come from natural resources, which can be limited and are often strained.
Detailed explanation-2: -Raw materials are the inputs used in the production process to create finished products that are ready to sell to consumers. This makes raw materials a vital piece of the global economy and international trade. Having natural resources that can serve as raw materials can boost exports and help a country grow its GDP.
Detailed explanation-3: -Cash flow management means tracking the money coming into your business and monitoring it against outgoings such as bills, salaries and property costs. When done well, it gives you a complete picture of cost versus revenue and ensures you have enough funds to pay your bills whilst also making a profit.
Detailed explanation-4: -Tips for improving your cash flow. Encourage customers to pay early. Manage staffing and cash flow. Manage your stock and suppliers. Consider your other assets and investments. Refine your marketing strategy. Forecast your cash flow. 28-Dec-2022