Cost traceability is decreased in a just-in-time operating environment.

Question

Quizplus · Accepted Answer

Just-in-time operating environments rely on keeping inventory levels low and only producing goods when they are needed. This can make it more difficult to trace the costs of individual items or batches, particularly if the production process involves frequent changes or adjustments. As a result, cost traceability may be decreased in a just-in-time operating environment.

Cost Traceability Is Decreased in a Just-In-Time Operating Environment