LUCKNOW UNIVERSITY B.COM NOTES

INVENTORIES MANAGEMENT Since inventories constitute about 50 to 60 percent of current assets, ECONOMIC ORDERING QUANTITY (EOQ) Cost of carrying includes the cost of storage, insurance, obsolescence, interest on capital invested. Maximum Level = Re-order level—(Minimum consumption) × (Minimum lead times) + Reordering quantity. Minimum Level = Re-order level – (Average usage × Average lead time). Re-order level = Maximum usage X Maximum lead time or Minimum level + Consumption during lead time. Re-ordering Quantity (How much to purchase): It is also called Economic Ordering Quantity. Danger Level - This is the level below the minimum stock level. Perpetual Inventory System The Institute of Cost and Management Accountants, London defines the perpetual inventory system as “A system of records maintained by the controlling department, which reflects physical movements of stocks and their current balance.” This system consists of the following three: a. Bin cards i.e. Quantitative P...

  ENTREPRENEURSHIP DEVELOPEMENT   1.    An individual who initiates, creates and manages a new business can be called C. An entrepreneur                                                       2. Trademarks relate to _______. D. Brand identity 3. Which could provide an individual with the motivation to start a new business venture? A. The financial rewards. B. A desire to be independent.                                      C. Risk-taking 4. Which of the following factors would not be included in a PESTLE analysis? C...