would it affect the fixed asset turnover or the return on assets?
2007-02-15 20:27:07 · 4 answers · asked by x700 1 in Business & Finance ➔ Other - Business & Finance
It woudl have some affect on both. Its greatest affect woudl be in turnover since your product going out the door is the same as the procuct Comming in the door. Its afect on return on assets woudl be in the fact that you need less inventory space (warehouse space) for bith raw materials and finished goods. As long as you have a smooth demand and supply can be guarenteed, then this system works quite well. The moment thier is an unanticipated spike in demand or a snow storm which delays your raw materials even one day, you are in trouble.
2007-02-15 20:40:10 · answer #1 · answered by daddyspanksalot 5 · 0⤊ 0⤋
it would affect the returns, for your stock would be greatly reduced .If you have items of low cost but great usage it is better to to bulk issue them than make them J.I.T
2007-02-15 21:30:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Do your own homework.
2007-02-15 20:30:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
do ur duety
2007-02-15 20:33:33 · answer #4 · answered by rgfmss 2 · 0⤊ 0⤋