Explain about temporary or variable working capital, Financial Management

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Q. Explain about Temporary or Variable Working Capital ?

Temporary or else Variable Working Capital - Any amount over and above the permanent level of working capital is called temporary and fluctuating or variable working capital. The distinction among permanent and temporary working capital is illustrated in the following diagram:-

SHOWING PERMANENT AS WELL AS TEMPORARY WORKING CAPITAL:

137_NEED FOR WORKING CAPITAL1.png

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