The return on assets effect quantifies and measures

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The return on assets effect (ROA) quantifies and measures:

the indirect contribution of supply management to profitability.

any increase in sales that occurs at a greater rate than the cost of assets.

the impact of supply actions on inventory and the balance sheet.

reductions in the allocations to the operating budget of the supply department.

the effect on profitability of reduced spend compared to a sales increase.

Reference no: EM13756815

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