Exam 12: The Management of Working Capital

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Pink Company expects demand for a product to be 12,005 units annually. It costs $5 per unit to carry inventory for one year. Order costs are $50 per order. The economic order quantity is:

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Extending the credit period granted, with all other components of the credit policy remaining unchanged, will most likely cause:

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Which statement concerning the operating cash cycle (OCC) is true?

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The economic order quantity model is concerned with answering the question:

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