Which of the following sets just-in-time systems apart from traditional manufacturing systems?
A)Cost of goods sold includes all manufacturing cost.
B)Materials are purchased only as they are needed to manufacture goods.
C)Cost of goods sold is not calculated.
D)It can be used in conjunction with activity based costing.

Question

Quizplus · Accepted Answer

Just-in-time systems are characterized by buying materials only as they are needed, whereas traditional manufacturing systems may buy materials in bulk to get better prices. This allows just-in-time systems to reduce inventory costs and waste. A, C, and D do not distinguish just-in-time systems from traditional manufacturing systems in this way.

Which of the Following Sets Just-In-Time Systems Apart from Traditional