Working Capital Management: 1820566 CIA 3.2

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Across
  1. 1. This type of cost arises on account of delay in payment on customer’s part
  2. 6. The approach when firm depends relatively more on short-term sources for finance.
  3. 10. In this method management know how to control on inventory to give right quantity order
  4. 11. The time taken to convert raw materials into finished products
  5. 12. When the firm depends more on long-term financial sources for meeting its financial needs, or financing the current-assets.
  6. 13. This method if implemented in business can bring down inventory cost to minimum levels.
  7. 14. Excess of current assets over current liabilities
  8. 15. This method is based on the last year’s sales.
Down
  1. 2. The goods and materials that a business have for the sale.
  2. 3. This ratio is computed by dividing the total of current assets by the total of current liabilities.
  3. 4. The minimum amount of working capital which even required dur­ing the dullest season of the year
  4. 5. This cycle measures the number of days a company’s cash is tied up in the production process.
  5. 7. This refers to the ability of a company to meet its immediate obligations without any trouble or strain.
  6. 8. These costs are directly proportionate to the increase in sales volume.
  7. 9. Current Assets= Current Liabilities