Business A-Level

Working Capital Management

What Working Capital Management means in Business A-Level, as defined for OCR.

Definition of Working Capital Management

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Reference: OCR

The optimization of current assets and current liabilities. This involves managing the trade-off between holding high levels of inventory (to meet demand) and maintaining cash reserves (to meet short-term obligations).

OCR · Management Accounting: Cash-flow

Topics that use Working Capital Management

Management Accounting: Cash-flow (OCR A-Level)

Related terms

Using Working Capital Management in the exam

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All Business A-Level terms