In an Effort to Improve Its Competitive Position, J

question 62

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 financing cost is estimated as 15% per year.
Required:
1. Estimate the net financial benefit (expressed in terms of operating income) that the company realized from the switch to JIT manufacturing.
2. List four (4) nonfinancial benefits the company might expect as a result to its move to JIT.
3. What are the primary expected costs of implementing a JIT system?

---

Definitions:

Cultural Survival Kit

The essential knowledge, beliefs, and practices that help a culture to maintain and reproduce itself in a changing environment.

Human Capabilities

The range of things that individuals can do or be in life, encompassing health, education, and the ability to achieve goals.

Postmodern Culture

A cultural state characterized by a rejection of objective truth and global cultural narratives, instead embracing relativism and the fragmentation of knowledge and identities.

Cultural Capital

Social assets not related to finances that enhance social advancement apart from monetary resources, including factors like education, intelligence, manner of speaking, and manner of dress.