Answered

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The optimal investment in current assets for an operating firm occurs at the point where: both shortage costs and carrying costs equal zero. shortage costs are equal to zero. carrying costs are equal to zero. carrying costs exceed shortage costs. the total costs of holding current assets is minimized.

Sagot :

Lanuel

Answer:

the total costs of holding current assets is minimized.

Explanation:

A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.

Some examples of current assets are account receivables, marketable securities, cash equivalent, etc.

Generally, the optimal investment in current assets for an operating firm occurs at the point where the total costs of holding current assets is minimized.

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