The Quick Corp

question 94

Essay

The Quick Corp.has implemented procedures to cut 1.5 days from their cash collection process.Annual sales (all charge sales) are $30 million and the opportunity cost of funds is 9 percent.What is the value of the annual savings, and how much would the savings be worth if the speed-up in collections can be considered permanent?

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Definitions:

Pin Factory

An example used by Adam Smith to describe the benefits of division of labor and specialization in increasing production efficiency.

Automobile Assembly

The process of putting together the various parts of cars or other vehicles.

Inefficient Processes

Processes that utilize more resources or time than necessary, leading to reduced productivity or increased costs.

M-Form

The Multidivisional Structure, a form of organizational structure where a corporation is divided into several semi-autonomous divisions, each with its own management.