Having been working in manufacturing for close to a decade

School: Southern New Hampshire University - Course: BUS 225 - Subject: Accounting

Having been working in manufacturing for close to a decade now, I've decided to make this post about the production process. One data set that I would look for would be our asset intensity. Asset intensity is a great metric to determine a company's productivity levels. To find this, I would need two additional sets of data; the total value of the company's total assets and the revenue stream of a set time period. Essentially, what is the total cost of the materials we have on hand to produce the product, and how much revenue has this product generated within the last quarter (or any length of time)? Lastly, to find the asset intensity, you simply divide the total assets by the sales to find the asset intensity. Finding the asset intensity is key to knowing how much you need to produce to generate the most revenue. It is also a great way to ensure that materials that are necessary for production are always in inventory. Asset intensity is an important metric for a company to track because "it shows how many assets a company needs to generate a certain amount of revenue. If a company has relatively few assets, it will likely need a lot of revenue to cover those costs and make a profit", (Tomasetti, 2023).

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