Define What Is Meant by the Term "Just in Time

question 14

Essay

Define what is meant by the term "just in time production" (JIT). As indicated in your text, management accountants can supply relevant information to management as it considers a move to JIT. In this regard, describe some of the principal advantages of using a JIT system, and then describe some of the incremental costs that would likely be associated with a move to such a system.

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Definitions:

Trial Balance

A financial report that lists all the accounts with their balances at a specific date, used to verify the equality of debits and credits in the bookkeeping system.

Ledger Accounts

Individual records that summarize all the financial transactions regarding a specific aspect of a business's financial activity, such as sales, accounts payable, or owner's equity.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, serving as a preliminary step to financial statement preparation.

Chart of Accounts

A systematic list of all account titles and numbers used by a company, organized to support the recording of transactions.