The Just-In-Time (JIT) Approach to Inventory Management

question 96

Multiple Choice

The just-in-time (JIT) approach to inventory management

• A)allows greater flexibility as to when products can be manufactured.
• B)results in higher inventory levels but reduces ordering and setup costs.
• C)results in lower inventory carrying costs.
• D)None of the above are correct.

Differentiate between permanent and temporary accounts.

Prepare journal entries for transactions involving purchases, returns, and payments.

Apply the net method for recording purchases in a periodic inventory system.

Apply the gross method for recording purchases in a periodic inventory system.