Research on the Selection of Capital Flow Mode in Manufacturing Enterprises
The traditional mode of capital flow and the small capital flow which is based on virtual settlement in manufacturing enterprises are both introduced in the article.At the same time,the influence on the company itself and the departments in it of the two capital flow mode are analyzed too.Then,a model in order to choose the suitable conditions of the two modes is brought forward,and it is based on cost-benefit balance analysis.Compared With the traditional cash flow mode,small cash flow model can reduce procurement costs and increase sales revenue,but also increased the financing costs,financial risk cost and sales cost.When income is greater than the cost of items,the small cash flow mode may be chosen;on the other hand,the traditional cash flow mode is better.