What are the risks associated with conversion cycle and changes need to reduce that risks?

Q: What will be the Effective Cost of Refinancing?

A: The term refinancing is related to mortgage refinancing, is a system that assists mortgage holders…

Q: What are the sources of risk associated with project development?

A: Variations in returns of an investment from its expected returns are called risk. The risk of an…

Q: How does the Broader Diversification Reduce Risk?

A: Portfolio is a pool of different investments/assets. Investors can categorize the risks in two…

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: What reinvestment rate assumptions are built into the NPV, IRR, and MIRR methods? Givean explanation…

A: It is a method under capital budgeting which includes the calculation of net present value of the…

Q: What does the equipment replacement investment decision involve?

A: Equipment replacement investment decision is an important form of capital budgeting decisions. In…

Q: When a new system is being considered, one of the questions is whether or not to survey the current…

A: Survey refers to gathering the information on any considered subject. Survey could be done using…

Q: What is the initial cost of setting up the "stop-loss"  strategy?

A: The Stop-loss strategy is very useful which helps the investors to protect in the market, as the…

Q: Why is it important to distinguish flexible and committed resources?

A: The economic elements that allow one to perform activities are referred to as the resources.…

Q: “Costs of abnormal spoilage are losses.”Explain.

A: Abnormal spoilage is spoilage that is not inherent in a specific production process and will not…

Q: What is the difference between best efforts and underwriting?

A: The term best efforts allude to a specialist organization's consent to take the necessary steps to…

Q: Disadvantage of institutional based correction

A: Following is the answer to the given question

Q: What is downsizing?

A: Downsizing: The process of downsizing is also termed as rightsizing is an approach to integrate and…

Q: What type of Risks are exists in the conversion cycle?

A: Cash conversion cycle (CCC) CCC is a tool for tracking the time the company spends to get the cash…

Q: What are the Flaws of Payback Screening?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Why is the additional risk not taken without expected additional return?

A: The risk-return tradeoff takes note of that the potential return increments with an expansion in…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: Why was the disposal value used for only replace and not upgrading?

A: Disposal Value will be used only in case of replacement because current machine will be sold if we…

Q: Which of the following value is concerned with the way we approach the end states?

A: Option a

Q: What are the primary considerations that should be made when refinancing?

A: Individual consider refinancing of the loan because of the following reasons: Interest rates have…

Q: What controls would you implement to

A: Internal Control system: Internal control system can be defined as the set of policies and…

Q: What are the risks that exist in the conversion cycle and the changes needed to reduce the risks?

A: The risks involved in the current system of the conversion cycle are as given below: There can be a…

Q: Describe the Replacement Analysis using the Opportunity-Cost Approach?

A: The company always considers the replacement projects when the old machinery or plant in the project…

Q: Discuss some of the techniques available to reduce risk exposure.

A: Risk exposure means possible losses which can be occur in future due to specific projects or…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: What is the Allowable Risk of Over-reliance?

A: Auditor has to test the account balances and classes of transactions and has to do both control…

Q: Explain Broader Diversification Reduces Risk?

A: The investment in different financial assets is known as the portfolio of an investor. The…

Q: How to minimize or eliminate risk using diversification or other means.

A: Diversification is a process investment in multiple assets with the available amount.

Q: What is the process of economically evaluating a project's desirability?

A: Project desirability is the desirability that differentiates the project from other ordinary…

Q: What are some of the reasons that ABM implementation may lose the support of highermanagement?

A: ABM (account-based marketing) is a company marketing technique that focuses efforts on a small…

Q: What does Unbundling entail reducing?

A: Unbundling is the process of selling, changing, or cutting assets, product lines, divisions, or…

Q: Why runaway gap (technical analysis) occur? Explain.

A: Introduction : The mentality underlying a runaway gap would be that dealers who missed the initial…

Q: Explain Handling Unequal Service Life Problems in Replacement Analysis?

A: Companies often consider various options when it does the replacement projects. Companies come…

Q: Is it possible to fully eliminate non-value added activities? If yes, how? If no, why?

A: Value can simply be defined as something which the customer is willing to pay or receive. Non Value…

Q: What is the net present value of selecting the new machine

A: Net Present Value is the difference between present value of cash inflow and present value of cash…

Q: costs and benefits of a too-big-to-fail

A: Too-Big-To-Fail Policy: Too-big-to-fail policy means saving a firm or industry whose failure can…

Q: What is reengineering?

A:

Q: Discuss how diversification can enhance risk reduction?

A: Introduction : Diversification can be understood as the act of distributing resources in such a…

Q: What is the objective of reengineering?

A: The reengineering is also known as Business Process Reengineering (BPR) and it refers to an effort…

Q: What is a goingconcern problem? What factors can contribute to such aproblem?

A: Given: To analyse about the going concern problem and its factors contribution as follows,