Some Companies Have Moved to JIT Without Changing the Substance

question 35

Multiple Choice

Some companies have moved to JIT without changing the substance of their accounting systems.Relying on the former accounting system may present problems for management because

• A) traditional accounting systems are designed to track items (labor efficiency, purchase price, overhead absorption) that are no longer primary concerns of management.
• B) control of cost drivers will be lost.
• C) managers do not understand the new manufacturing environment.
• D) traditional accounting systems discourage the creation of large inventories that are necessary to ensure uninterrupted production runs.

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Definitions:

Microtubule Arrangement

The organization of microtubules within a cell, which plays an important role in cell shape, transport within the cell, and cell division.

Flagellum

A long, whip-like appendage that protrudes from the cell body of certain cells and is used for locomotion or sensory functions.

Cilium

One of many short, hairlike structures that project from the surface of some eukaryotic cells and are used for locomotion or movement of materials across the cell surface.

Cytoskeleton

The dynamic internal network of protein fibers that includes microfilaments, intermediate filaments, and microtubules.