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.

Question

Quizplus · Accepted Answer

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.

The Impact of Supply Management Actions on the Balance Sheet