how does production cycle affect the requirement of working capital
Answers
Answered by
2
Answer:
Production cycle means the time involved in converting raw material into finished product. The longer this period, the more will be the time for which the capital remains blocked in raw material and semi-manufactured products.
Thus, more working capital will be needed. On the contrary, where period of production cycle is little, less working capital will be needed.
Answered by
15
Production cycle means the time involved in converting raw material into finished product. The longer this period, the more will be the time for which the capital remains blocked in raw material and semi-manufactured products. Thus, more working capital will be needed..
mark me as brainliest
Similar questions