Which three of the actions below would improve Go Jewels' cash flow, assuming sales remain the same?
Select three answers - Edexcel - GCSE Business - Question 12 - 2018 - Paper 1
Question 12
Which three of the actions below would improve Go Jewels' cash flow, assuming sales remain the same?
Select three answers.
A. Buy cheaper raw materials
B. Increase... show full transcript
Worked Solution & Example Answer:Which three of the actions below would improve Go Jewels' cash flow, assuming sales remain the same?
Select three answers - Edexcel - GCSE Business - Question 12 - 2018 - Paper 1
Step 1
A. Buy cheaper raw materials
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
By purchasing cheaper raw materials, Go Jewels can reduce production costs, which directly enhances cash flow while maintaining sales quantity.
Step 2
B. Increase the price of each item
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Increasing the price of each item can lead to higher revenue per sale. If sales volume remains unchanged, this approach will improve the overall cash flow.
Step 3
F. Rent cheaper premises
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Renting cheaper premises decreases fixed costs, thereby providing better cash flow management, assuming that the sales volume does not diminish.
