Financial Management

Assumptions are inherent in the Economic Order Quantity (EOQ) model Economic order quantity (EOQ) is the order quantity of inventory that minimizes the total cost…

The concept behind the Economic Order Quantity (EOQ) model Economic order quantity (EOQ) model is the method that provides the company with an order quantity.…

Holding Inventory is the Inventory helps the organization to prevent fluctuations in demand & supply from affecting sales or production. The main objective of holding…

Commercial draft refers to the instrument issued by the drawer to entrust the payer to pay a certain amount of money to the payee or…

Credit Policy Variable A company’s policy on when its customers should pay for goods or services they have ordered a government’s policy at a particular…

Inventory Management is the management of inventory and stock. The overseeing and controlling of the ordering, storage and use of components that a company will…

Open account An open account transaction is a sale where the goods are shipped and delivered before payment is due. Which means that the only…

Credit standard means some principles that increase the selling of product and services in debt. Credit standard of a firm may be aggressive or flexible,…

Trade Acceptance is a contractual agreement on a time draft or sight draft to pay the amount due at a particular date. The amounts to…

Seasonal Dating Under seasonal dating, the company considers an effective invoice date (rather than sales date) from when discounting period continue. This Term is used…