Seasonal variations and size of business, Managerial Accounting

Assignment Help:

Seasonal Variations: Commodities along with seasonal demand results in raised level of working capital requirement. It could be offset through scaling down operations throughout the lean part of the year and raising production prior to demand period. Products manufactured along with raw materials, the production of that is seasonal agricultural products would necessitate higher amount of working capital.

Size of Business: Size of the firm is as well a finding factor in estimating working capital needs. The size of a firm might be measured either in terms of scale of assets, or sales or operations. Large firms need additional amount of working capital for investment in current assets as well as to pay current liabilities than slighter firms. Though, in some cases even a small firm may require more working capital like a cushion against cash flow interruptions.


Related Discussions:- Seasonal variations and size of business

Determine the profitability ratios, Profitability ratios The primary ob...

Profitability ratios The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business re

Explain the objectives of management accounting, Explain the Objectives of ...

Explain the Objectives of management accounting? 1. Planning and policy formulation: the object of management accounting is to supply necessary data to the management for fo

Extra shift decision, EXTRA SHIFT DECISION These decisions are concerne...

EXTRA SHIFT DECISION These decisions are concerned with whether or not a company should work for 8 hrs, 16hrs, or 24 hrs a day or week days only or weekends also.  The factors

Define zero bases budgeting according to cima, Define Zero bases budgeting ...

Define Zero bases budgeting According to CIMA According to CIMA, ZBB is a method of budgeting whereby all activities are re evaluated each time a budget is set. Discrete l

Explain the various stages of product life cycle, Various stages of product...

Various stages of product life cycle Typically the life cycle of a manufactured product will consist of the following stages: 1) market research : before any investment in

Describe the nature of standard costing, Describe the Nature of standard co...

Describe the Nature of standard costing The system of standard costs (standard costing) is a management technique of using predetermined costs (standard costs) for evaluating p

First cut analysis of costs , First Cut Analysis of Costs The allocati...

First Cut Analysis of Costs The allocation of costs and assets will produce a value chain that illustrates graphically the distribution of a firm's costs. It can prove reveali

What are the advantages of break even charts, What are the Advantages or us...

What are the Advantages or uses of break even charts Computation of break even point or presentation of cost volume and profit relationship by way of break even charts has the

Use of budgetary controls, Use of Budgetary controls Budgetary controls...

Use of Budgetary controls Budgetary controls are used for the following reasons: 1) To state the objectives of the organization as a whole. 2) To reveal the extent by whi

Cash discount, Cash discount is given to buyers to bring them to make promp...

Cash discount is given to buyers to bring them to make prompt payment. The credit terms identify the percentage discount and the period throughout which it is obtainable. Liberal c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd