Asked by Halwi Ahmed on May 13, 2024

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The impact of supply management actions on the balance sheet is measured by the:

A) return on investment effect.
B) return on inventory effect.
C) inventory turnover effect.
D) return on assets effect.
E) profit leverage effect.

Inventory Turnover Effect

A measure of how quickly a company can sell its stock within a given period, indicating the efficiency of inventory management and sales performance.

Return on Investment

A measure of the gain or loss generated on an investment relative to the amount of money invested.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and shareholders' equity.

  • Acknowledge the influence of supply management operations on the financial success and competitive ranking of the organization.
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Isaiah SorotenMay 16, 2024
Final Answer :
D
Explanation :
The return on assets effect measures how supply management actions affect the profitability of assets owned by the company. It takes into account the impact of inventory turnover and return on investment, as well as other factors such as depreciation and interest expense. Therefore, it is the most fitting choice for measuring the impact of supply management actions on the balance sheet.