BUS 320 Lecture 6: BUS 320 Chapter 6
6 May 2020
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Document Summary
The financing and management of the current assets of a firm. Crucial to achieving long-term objectives of the firm. Effective current assets management requires matching of the forecasted sales and production schedules. Differences in actual sales and forecasted sales can result in: Current assets fluctuate in the short run, depending on: Level of production vs the level of sales. When production is higher than sales the inventory rises. Use of manpower & equipment efficiently to lower cost. Match sales and production as closely as possible in the short run. Allows current assets to increase or decrease with the level of sales.
