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Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and little cash will have a negative signify upon the overall profitability of the firm like too much cash would imply such cash remaining inactive and too less cash would slow down the smooth running of the operations of the firm. Thus, there is requirement for the exact management of cash to ensure high levels of productivity. Cash is money that can be used through the firm without any external limits. The term cash comprised notes and a cheque, coins held through the firm and balances their firms like bank accounts.
This is a usual practice to include near cash items such as marketable securities and bank term deposits in cash. The basic characteristic of near cash items is that, they can be quickly and easily converted into cash without any transaction cost or negligible transaction cost.
In the recent years we have witnessed an increasing volatility in interest rates and exchange rates which calls for specialized skills known as Treasury Management. Recent years have also witnessed an expanding economy due to which there is an increased demand of funds from the industry.
OBJECTIVES
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You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following: • A descript
accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;
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