The total inventory cost includes the total carrying cost

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Reference no: EM131602534

1. Working capitals are current assets such as cash, inventory, account receivables, and marketable securities. The objective of working capital management to minimize the amount of working capitals.

True

False

2. The cash conversion cycle is the net time interval between cash expenditures of raw materials and cash receipts on accounts receivables. It measures the length of time the firm has funds tied up in working capital.

A. True.

B. False.

3. The total inventory cost (TIC) includes the total carrying cost (TCC) and the total ordering cost (TOC). Your goal is to minimize the TIC.

True

False

Reference no: EM131602534

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