Show a deterioration in financial performance

Assignment Help Financial Econometrics

Reference no: EM131491520

Question: Do you agree that reducing inventory in line with JIT system will not always lead to better profitability numbers in the income statement and balance sheet? I am not talking here about the cost of running out of stocks or any of these problems. Assume a very successful JIT which promised to reduce inventory and delivered on its promise. Why, despite that, financial numbers may show a deterioration in financial performance?

Reference no: EM131491520

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