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Q. What do you mean by Inventory days?
(Average inventory / Cost of sales) x 365 days
Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories + closing inventories) / 2. This ratio tells how long the inventory stays in the company before it is sold. The lower the ratio the more efficient company is trading, however this may result in low levels of inventories to meet demand. A lengthening inventory period may indicate a slowdown in trade and an excessive build up of inventories, resulting in additional costs.
Stephen Hecht, grandson of Marcus Hecht, the founder of Classy Formal Wear and now executive vice president and chief operating officer of the firm, was considering how his new lin
Question: The steps in value chain analysis are to examine the company's primary activities and support activities. (a) Elucidate the primary and support activities. (b)
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what have you learnt about business strategy?
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