Which of the following statements are true?I. One of the purpose of JIT inventory system is to have goods ready just when the customer needs them.II. Under JIT, materials are pushed from one workstation to another to ensure timely completion of finished products.III. In a JIT environment, workers are expected to be cross-trained and work as a team.

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following statements are true?I. One of the purpose of JIT inventory system is to have goods ready just when the customer needs them.II. Under JIT, materials are “pushed” from one workstation to another to ensure timely completion of finished products.III. In a JIT environment, workers are expected to be cross-trained and work as a team.

A	I and II only
B	II and III only
C	I and III only
D	All of them

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: -Just-in-time inventory management reduces waste, improves cash flow, increases flexibility, optimizes human resources and encourages team empowerment. Companies that are successful at JIT inventory management maximize profits by keeping investment in stock as low as possible.

Detailed explanation-3: -Increase Productivity 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.

Detailed explanation-4: -Explanation: Greater flexibility, workforce participation, and simplified scheduling and control are the advantages of JIT.

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