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Q. What do you mean by Trade payable days?
Trade payable days (turnover)
{Yearend trade payables / Credit purchases (or cost of sales)} x 365 days
This is the length of time taken to pay the suppliers. The ratio can also be calculated using cost of sales, as credit purchases are not usually stated in the financial statements. High trade payable day's is good as credit from suppliers represents free credit. If it's too high then there is a risk of the suppliers not extending credit in the future and may lose goodwill. High trade payable days can also indicate that business has no cash to pay which indicates insolvency problems.
Question: (a) Describe the concept of virtual organisation. (b) ‘It is critical for an organisation to attain congruence between its strategy and organisational structure
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Q. Show the Modern methods of budgeting? A flexible budgeting system produces many budgets projecting costs and revenues over different ranges of production or sales volumes.
Q. Explain Zero based budgeting? Zero based budgeting (ZBB) is a method of budgeting, which requires each cost element within the budget to be specifically justified as though
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Goold and Campbell identified three 'styles of strategic management', looking at ways in which control can be divided between senior management and individual business units.
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