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Posted: April 10th, 2022

Determination of the effects of changes in exchange rates

Identification of Management Issues

Business Application- Identify each of the following decisions as most directly related to (a) cash flow management, (b) choice of inventory system, or (c) for- eign merchandising transactions:

1. Determination of the amount of time from the purchase of inventory until it is sold and the amount due is collected.

2. Determination of the effects of changes in exchange rates.

3. Determination of policies governing sales of merchandise on credit.

4. Determination of whether to use the periodic or the perpetual inventory system

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