In an Effort to Improve Its Competitive Position, J

question 8

Essay

In an effort to improve its competitive position, J.J.Borden Company recently introduced Just-in-Time (JIT) production techniques.Its management accountant assembled the following data regarding the recent change:
Inventory carrying cost is estimated as 15.0% per year.
Required:
1. Estimate the net financial benefit (expressed in terms of the change in operating income) that the company realized from the switch to JIT manufacturing. Round your answer to nearest dollar.
2. List four (4) nonfinancial benefits the company might expect as a result to its move to JIT.
3. List two (2) expected costs of implementing a JIT system?

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Definitions:

Irritability

A state of increased sensitivity or annoyance, often resulting from stress or fatigue.

Socio-Emotional Network

The complex system of relationships and emotional connections that influence an individual's social interactions and emotional well-being.

Cognitive-Control Network

A system of brain regions involved in regulating thoughts and behaviors, enabling goal-directed action and self-control.

Anorexic

Relating to anorexia, an eating disorder characterized by an intense fear of gaining weight and a distorted body image.