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Conflicting Influences of Inventories

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Access and read the article: Baxendale, S. J., Boyd, L. H., Gupta, M. (2006, Nov/Dec). The absorption costing/inventory management conundrum. Cost Management, 20(6), 30-39. Write a summary on the article.

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Access and read the article: Baxendale, S. J., Boyd, L. H., Gupta, M. (2006, Nov/Dec). The absorption costing/inventory management conundrum. Cost Management, 20(6), 30-39. Write a summary on the article in at least 400 words.

The article focuses on the conflicting influences of inventories on net income and effective operations of a company. The article introduces a tool that has the potential of spotlighting the conflicts related to inventory and help in resolving the conflict. From the perspective of Japanese Management and especially the use of Just-In-Time techniques, the operational profits of a company increase if its inventory levels are kept low. In general if the inventory of goods is kept at a low level the costs related with carrying inventory are reduced and long-term profits and benefits of the company ...

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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