Our Recommendations :-
Follow CA Final FB Page

Explain the role of ‘Operational efficiency’ in the determination of working capital requirement?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 aliya bhat asked over 2 years ago

Hi Can you please Explain the role of ‘Operational efficiency’ in the determination of working capital requirement?

    0       0 Answer Now Comment Report
2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered over 2 years ago

Hello The firm with a better operational efficiency has to invest less in working capital because they convert raw materials quickly into finished goods, and sell them at their earliest. i.e. a) converts stock into sales quickly. b) Promptly collects debts from debtors and bills receivable

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Chirag answered over 2 years ago

The firm with a better operational efficiency has to invest less in working capital because they convert raw materials quickly into finished goods, and sell them at their earliest. i.e. a) converts stock into sales quickly. b) Promptly collects debts from debtors and bills receivable

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.