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CA Inter Working Capital — practice questions — page 3

Explore 62 free Working Capital questions in CA Inter Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

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Working Capital questions and exercises with answers

Showing questions 61–62 of 62.

Worked practice questions

Setting a number of days of supply as a coverage target is an example of

  1. stochastic modelling
  2. an inventory engine
  3. a rule of thumb approach
  4. multi-echelon optimization
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Correct answer: C. a rule of thumb approach

Fixed days-of-supply targets are a rule of thumb used when inventory is not optimized.

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Single stage inventory calculations look at which scope?

  1. A single item at one location
  2. All items across all locations
  3. Every echelon in the network
  4. All suppliers at once
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Correct answer: A. A single item at one location

A single stage calculation sizes stock for one item in one place without considering the network.

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