From an accounting point of view,one implication of an effective just-in-time inventory system is that:
A)Sales transactions must be recorded using on-line point-of-sale terminals.
B)Inventories are less material in dollar amount and alternative inventory flow assumptions will produce more similar results.
C)The cost of goods sold is significantly reduced.
D)Purchases of merchandise are recorded as cash payments are made,and sales transactions are recorded as cash is received.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems aim to minimize inventory levels and increase inventory turnover. As a result, the materiality of inventories on the financial statements decreases, and the different inventory flow assumptions (FIFO, LIFO, Weighted Average) will produce more similar results. However, sales transactions and recording of purchases are not directly affected by the use of a just-in-time system.

From an Accounting Point of View,one Implication of an Effective