Working Capital Management Question:
What is Norms?
Answer:
Norms : The committee suggested 15 industries excluding engineering industries. These norms were suggested in following forms:
a. For Raw materials: Consumption in months
b. For Work in Progress: Cost of production in months
c. For Finished Goods: Cost of Sales in months
d. For Receivables: Sales in months
a. For Raw materials: Consumption in months
b. For Work in Progress: Cost of production in months
c. For Finished Goods: Cost of Sales in months
d. For Receivables: Sales in months
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