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Business > Measuring Efficiency > Flashcards

Measuring Efficiency Flashcards

1
Q

Trade receivable days

A

(Trade receivables ÷ credit sales) X 365

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2
Q

Trade payable days

A

(Trade payables ÷ credit purchases) X 365

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3
Q

Inventory turnover

A

(Average inventory ÷ cost of sales) X 365

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4
Q

Average inventory

A

(Opening inventory + closing inventory) ÷ 2

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Business (8 decks)

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