In a JIT manufacturing environment, product-costing information is used mainly for all of the following EXCEPT

Question

Quizplus · Accepted Answer

In a JIT manufacturing environment, inventory is kept at a minimum level, and product-costing information is used for operational decision-making rather than for financial reporting purposes. Therefore, product costing of inventory for financial reporting purposes is not a primary use of product-costing information in JIT manufacturing. Other uses, such as pricing decisions, product profitability analysis, and make-or-buy decisions, are more important in JIT manufacturing.

In a JIT Manufacturing Environment, Product-Costing Information Is Used Mainly