Which of the following is a major difference between the just-in-time (JIT) and traditional approaches to manufacturing? The JIT approach usually involves many suppliers while traditional approaches usually involve only a small number of suppliers. The JIT approach operates with low inventory levels while traditional approaches may operate with high inventory levels. The JIT approach uses a push-through system while traditional approaches use a pull- through system The JIT approach requires centralized purchasing while traditional approaches encourage purchasing decisions by production employees.

Which of the following is a major difference between the just-in-time (JIT) and traditional approaches to manufacturing? The JIT approach usually involves many suppliers while traditional approaches usually involve only a small number of suppliers. The JIT approach operates with low inventory levels while traditional approaches may operate with high inventory levels. The JIT approach uses a push-through system while traditional approaches use a pull- through system The JIT approach requires centralized purchasing while traditional approaches encourage purchasing decisions by production employees.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 75.2C: Inventory Costing When Inventory Quantities Are Small A number of companies have adopted a...

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Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.
Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for inventory. However, under JIT, inventory- related costs are reduced by ordering frequently and in small quantities. Can you explain why both of these statements are correct? Explain why some organisations onsider it important to measure customer retention and customer satisfaction.
Companies enjoy many benefits of using JIT. Which is not a benefit of adopting JIT? Ability to respond quickly to changes in customer demand Lower inventory carrying costs Ability to continue production despite disruptions in deliveries of raw materials More space available for production
Firms keep supplies of inventory for which of the following reasons? To provide a feeling of security for the workforce To maintain dependence of operations To meet variation in product demand
Which of the following is NOT a principle of lean manufacturing?a. Achieve high inventory turnover rate.b. All activities that do not add value and maximize the use ofscarce resources must be eliminated.c. Products are pushed from the production end to the customer.d. A lean manufacturing firm must have established andcooperative relationships with vendors.
Which of the following is NOT a principle of lean manufacturing? a. Products are pushed from the production end to the customer. b. All activities that do not add value and maximize the use of scarce resources must be eliminated. c. Achieve high inventory turnover rate. d. A lean manufacturing firm must have established and cooperative relationships with vendors. e. All of the above are lean manufacturing principles.
Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT? a. Ability to respond quickly to changes in customer demand b. Lower inventory carrying costs c. Ability to continue production despite disruptions in deliveries of raw materials d. More space available for production
Which of the following are features of lean manufacturing? Yes or NO a. Maintaining excess inventory to ensure that products will always be available b. Cross-training of employees c. Giving employees additional authority and responsibility d. Product-oriented layout e. Increased setup time
1- What does the EOQ decision model help managers do? 2- Why are companies using just-in-time purchasing? 3- What are the main features of JIT production? 4- How does backflush costing simplify traditional inventory costing? 5- How is lean accounting different from traditional costing systems?
Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing operating income, such increases and decreases could be misinterpreted as operating efficiencies or inefficiencies. Each decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful. All costs are controllable in the long run by someone within a business. For a given level of management, costs may be controllable costs or noncontrollable costs. The production manager for Saxon, Inc. is worried because the company is not showing a high enough profit. Looking at the income statements on the Absorption Statement and the Variable Statement, he notices that the operating income is higher on the absorption cost income statement. He is considering manufacturing another 10,000 units, up to the company’s capacity for manufacturing, in the coming year. He reasons that this will boost operating income and satisfy…
Explain why some management accountants believe that absorption costing may provide an incentive for managers to overproduce inventory.
Which of the following is NOT a problem associated with standard cost accounting? a. Standard costing motivates management to produce large batches of products and build inventory. b. Applying standard costing leads to product cost distortions in a lean environment. c. Standard costing data are associated with excessive time lags that reduce its usefulness. d. The financial orientation of standard costing may promote bad decisions. e. All of the above are problems with standard costing.