Receivables management, Managerial Accounting

In the earlier unit, we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable securities. Inside a classical manufacturing company the debtors to net asset ratio vary from 20 to 25 percent that is a considerable investment of funds. The effective management of this benefit will have an important effect on the company's profitability. The receivable or debtors arise because of credit sales that is undertaken so as to encourage customers to purchase services or goods. Accounts receivable utilize funds, and tying up funds in these investments has a related cost that must be considered along with the advantages from enhanced sales of services and goods. In this section we are going to discuss the different issues included in management decisions of extending credit as accounts receivable.

Posted Date: 4/9/2013 5:09:29 AM | Location : United States







Related Discussions:- Receivables management, Assignment Help, Ask Question on Receivables management, Get Answer, Expert's Help, Receivables management Discussions

Write discussion on Receivables management
Your posts are moderated
Related Questions
Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be

Hornsby Manufacturing has four categories of overheads. The four categories and the expected overhead costs for each category for next year are as follows:   Maintenance  $140,000

Accounting Profit is a company's sum total earnings, computed according to Generally Accepted Accounting Principles (GAAP), and involves the explicit costs of operating business, l

Predisco ( like myob) online project, please let me know if u can do it.



SIMULATION MODELS Simulation is a method of analyzing a system by experimentally duplicating its behavior. Management accountants can be able to make meaningful inferences conc

Strategy A business characteristically invests considerable time and money in developing or creating its strategy. Employees, harried with day-to-day tasks, sometimes fail to s

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

Explain Management accounting Meaning & definition: Management accounting is comprises of two words, Management and accounting. It is the study of managerial aspect of the ac