Question

During inflation pressure how can finance managers control the needs of increasing working capital.

Answer 1

1. Substitute Raw Material

The possibility of cosuming the substitute raw materials without affecting the quality should be explored . Research activities shoudl be done in this regard , with the financial assistance provided by the Government .

2. Improve Productivity

Attempts should be made to improve the productivity of the work force by the motivational strategies. Increased productivity will results in the increase in value added and thus has the impact of reducing labor cost per unit.