It Has Been Argued That If One Could Perfectly Synchronize

question 86

Essay

It has been argued that if one could perfectly synchronize a firm's cash inflows and outflows,short-term financial planning would be unnecessary. Do you agree?
What actions can the firm's financial decision-makers take to reduce the degree of asynchronization?
Why should this be a concern?

Develop and analyze direct labor rates and hours for budgetary control and performance measurement.

Calculate and interpret standard cost and budgeted cost estimations for materials and labor.

Understand the definition and impact of process conflict within organizations.

Comprehend the concept and significance of disposition-based trust and its role within the workplace.

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Definitions:

Bullwhip Effect

The Bullwhip Effect describes the phenomenon where variability in consumer demand causes progressively larger fluctuations in demand experienced by upstream suppliers in a supply chain.

Efficient Frontier

In finance, a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Responsiveness

The ability of an organization or system to quickly react to changes or needs within its environment or among its stakeholders.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.