BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The primary objective of just-in-time processing is to
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accumulate overhead in activity cost pools
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eliminate or reduce all manufacturing inventories
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identify relevant activity cost drivers
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none of them
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Explanation:
Detailed explanation-1: -Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover.
Detailed explanation-2: -The benefits are low inventory, high manufacturing cycle rates, high output per employee, minimum floor space requirements, minimum indirect labour, and perfect in-process control.
Detailed explanation-3: -JIT inventory management increases productivity by reducing the time and resources required for manufacturing. This ensures faster production and shorter production runs. You can also implement product changes quickly as there is less raw material stock.
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