2 pages/≈550 words
Literature & Language
Inventory Turnovers in Automobile and Electronics Retailing Industries (Essay Sample)
Question 1: Read the "Matter of Fact" paragraph below and compare and contrast inventory turnovers among different industries. For example compare the inventory turnover of the automobile industry with that of the electronics retailing industry. Other industries to consider are aerospace, farm equipment, and home furniture. Matter of fact: Observe that the grocery business turns over assets faster than any of the other industries listed. That make sense because inventory is among the most valuable assets held by these firms, and grocery stress have to sell baked goods, dairy products, and produce quickly or throw them away when they spoil. It's true that some items in a grocery store have a shelf life longer than anyone really wants to know but on average a grocery store has to replace its entire inventory in just a few days or weeks, and that contributes to the rapid turnover of the firm's total assets. Question 2: Discuss why the financial planning process in a firm must be an ongoing process throughout the life of the firm. source..
Inventory Turnovers in Automobile and Electronics Retailing Industries
In business manufacturing, inventory is one of the major assets that determine the revenue generated in a firm. Inventory turnover is the number of times that the inventory of a firm is sold in one financial year (Stickney, Weil, Schipper, & Francis, 2009, p. 259). Inventory turnover differs significantly from one industry to another. However, there are also similarities in inventory turnover in different industries. Inventory turnover in the automobile industry is related to the inventory turnover of electronics retailing industry in a number of ways. First, the inventory turnover in the two industries changes with seasons. When a new product is made in the automobile industry or in the electronics retailing industry, the inventory turnover becomes high especially if such a product is unique. This is because the customers are attracted to high quality products in the two industries.
Despite the similarities in inventory turnover in automobile and electronics retailing industries, there are major differences as well. First, the rate of inventory turnover in the electronics industry is relatively higher than that of the automobile industry (Williams, 2008, p. 469). This is because products...
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