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Topic: |
Business
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Number of pages / Number of words: |
7 / 1917 |
Essay's paper body
With the use of lean manufacturing there is recognized improvements with the lead times, on-time deliveries, and scrap rates, however these are not captured anywhere on the generally accepted accounting practices (GAAP) financial statements. These changes usually cause for some initial decline in net income...
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These changes usually cause for some initial decline in net income. Even though the decline in net income is usually short lived it would be cause of concern for many executives. The net income decline is because as the company is working through its existing inventory, deferred labor and overhead moving from the asset side of the balance sheet to the expense section of the income statement...
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