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Foundations Of Financial Management
Found in: Page 182
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

What is the significance to working capital management of matching sales and production?

An organization can keep a minimum level of inventory if the sales and production are matched. This helps in managing the working capital working capital with ease.

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Step by Step Solution

Working capital management

The process of managing the current assets and liabilities of a company is called working capital management. This process requires the management to efficiently utilize its resources to increase its earnings.

The significance of matching sales and production

Matching of sales and production will ensure that the company can keep a minimum balance of inventory. This will result in low investment in the company’s inventory and lower the financing costs.

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