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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.
Division X has a target return on investment (ROI) of 12%. It has fixed costs of £400,000 and a variable cost per unit of £5. The net assets of the division forecast for the next
What is Restructuring?
An industrial accident may be defined as "an occurrence. Which interrupts or interferes with the orderly progress or work in an industrial establishment." According to the Facto
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