When JIT is implemented,which of the following changes in the accounting system would not be expected?
A)fewer cost allocations
B)elimination of standard costs
C)combining labor and overhead into one product cost category
D)combing raw material and materials in work-in-process into one product cost category

Question

Quizplus · Accepted Answer

JIT implementation does not necessarily require the elimination of standard costs, so this change would not be expected. However, fewer cost allocations may occur as a result of reduced inventory and simplified production processes. Combining labor and overhead into one product cost category, as well as combining raw material and materials in work-in-process into one product cost category, are both potential changes that could be seen with JIT implementation.

When JIT Is Implemented,which of the Following Changes in the Accounting