9 Opportunity versus Trading Costs Konyagi plc has an average daily cash balance of 10,500. Total cash
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9 Opportunity versus Trading Costs Konyagi plc has an average daily cash balance of £10,500.
Total cash needed for the year is £65,000. The interest rate is 3 per cent, and replenishing the cash costs
€17 each time. What are the opportunity cost of holding cash, the trading cost and the total cost? What do you think of Konyagi’s strategy?
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Kirti Kaushal
Having experience of more than 10 years is good enough to coach my students. Currently, I am working as an active supervisor of ACCA students. In my career, I helped students in financial accounting, management accounting, cost accounting, financial reporting, taxation, and audit. I also helped students publish their articles or papers in good journals. I also helped students with thesis and objective writing.
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