JIT: cost accounting and cost management issues
Article Abstract:
Just-in-time (JIT) purchasing and JIT production systems are discussed, along with the cost accounting options that accompany these systems. JIT purchasing can be implemented in a variety of industries, including retail trade, wholesale operations, distributor groups, and manufacturers. JIT production is only available to manufacturers. Both forms of JIT emphasize: (1) the elimination of activities that do not add value to products; (2) a commitment to quality; (3) an emphasis on ongoing improvement of operations; and (4) a focus on simplification of operations and increased visibility from an accounting standpoint. The JIT cost accounting options are discussed for both types of JIT, with emphasis placed upon: cost accounting choices, economic savings affordable through JIT, and variations in cost accounting systems relative to cost pools, allocation bases, and performance measures.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
Eleven key issues in manufacturing accounting
Article Abstract:
A survey conducted among Canadian manufacturing plants indicated that accounting is not meeting the challenge of technological advances within the manufacturing industries and that solutions developed to theoretical problems are not put into practice. Issues requiring additional research include: piecemeal selection of new equipment, costing work-in-process inventories, costing rush orders, manufacturing and marketing coordination, setup costs, and downscaling. Theoretical models that would be useful in practice include: costing long-term versus short-term capacity, pricing, bottleneck management, screening rules, and quality control.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
How cost management systems can support the JIT philosophy
Article Abstract:
Almost any company can make its cost systems more supportive of the just-in-time (JIT) philosophy. The first step entails financial executives adopting the underlying JIT principle of continual improvement, in both the organization and the cost management process. JIT philosophies will significantly affect the identification of cost drivers (non-value-added processes), the number of product cost elements, application of product costs, and the nature of performance measures. Performance measurements that are not appropriate in JIT are: direct labor efficiency, utilization, and productivity, as well as machine utilization.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Activity-based costing at Cal Electronic Circuits. The anatomy of an effective HMO cost management system. Developing a pricing system for a small business
- Abstracts: Effects of monitoring and tradition on compensation arrangements: an experiment with principal-agent dyads. Commitment to employer and union: effects of membership status
- Abstracts: Techniques in inventory management and control. Performance measurement and planning -- revisited
- Abstracts: Investing excess working capital. Tapping the hidden value of your assets. How to estimate the effect of a stock repurchase on share price
- Abstracts: IFPS-Personal: The future for spreadsheet packages? Manufacturing on a shoestring: Armor Premier software. The construction solution