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Gekata [30.6K]
3 years ago
15

Bell Co. changed from a traditional manufacturing philosophy to a just-in-time philosophy. What are the expected effects of this

change on Bell’s inventory turnover and inventory as a percentage of total assets reported on Bell’s balance sheet?
A. Decrease, Decrease
B. Decrease ,Increase
C. Increase, Decrease
D. Increase, Increase
Business
1 answer:
kotykmax [81]3 years ago
7 0

Answer:

C. Increase, Decrease

Explanation:

Inventory turnover is increased because there are very low or almost nill Closing inventorya as we divide the cost of goods sold with a lower number. Inventory as a percentage to total asset will be decrease because there will be a lower value ofinventory in the balance sheet. Comparing it with total value of asset tells us the percentage of total asset.

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