COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory.
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just in time processing
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activity based costing
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period costing
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none of these.
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Explanation:
Detailed explanation-1: -Material requirement planning (MRP) and Just-in-Time (JIT) are two different approaches in planning and controlling materials. MRP focuses on planning based on sales forecast, while JIT concerns on production taken from actual customer orders.
Detailed explanation-2: -A just-in-time (JIT) inventory system is a management strategy that has a company receive goods as close as possible to when they are actually needed.
Detailed explanation-3: -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.
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