Just-in-time management systems use a combined account for Raw Materials Inventory and Work-in-Process Inventory known as the ________.
A)Raw Materials Inventory account
B)Work-in-Process Inventory account
C)Raw and In-Process Inventory account
D)Process account

Question

Quizplus · Accepted Answer

Just-in-time management systems combine the Raw Materials Inventory and Work-in-Process Inventory into one account known as the Raw and In-Process Inventory account. This is because the goal of just-in-time systems is to minimize inventory and have materials and goods flow smoothly through the production process without delays or excess inventory. Combining the two accounts allows for more efficient inventory management and reduces the risk of overstocking raw materials or work-in-process inventory.

Just-In-Time Management Systems Use a Combined Account for Raw Materials