Accounting for product costs in a JIT environment
A)uses a job order costing system.
B)classifies processing costs as raw (or direct)material,direct labor,and overhead.
C)is more complex than in other types of manufacturing environments.
D)follows process costing procedures whereby costs are accumulated by the process (cell)and attached to units processed for the perioD.

Question

Quizplus · Accepted Answer

In a JIT (Just-In-Time) environment, the focus is on streamlining processes and reducing waste, including minimizing inventory levels. Costs are typically accumulated by the process or cell, and attached to units as they are processed, which aligns with process costing procedures. This approach helps in accurately assigning costs in a JIT setting, where production is often highly integrated and continuous, rather than in discrete batches as in job order costing.

Accounting for Product Costs in a JIT Environment