If JIT manufacturing is used and each manufacturing cell produces a single product, which of the following is considered a direct product cost?

Question

Quizplus · Accepted Answer

In a JIT (Just-In-Time) manufacturing system, direct product costs include all costs that can be directly traced to the production of a specific product. This includes inspection costs (since they ensure the product meets quality standards), materials (as they are a direct component of the product), and setup costs (since they are directly associated with preparing equipment or processes for the production of a specific product).

If JIT Manufacturing Is Used and Each Manufacturing Cell Produces