The Value of JIT Inventory Systems Is

question 12

Multiple Choice

The value of JIT inventory systems is

• A) saving on warehouse space and labor.
• B) ensuring financial resources are not tied up in inputs waiting to be used.
• C) identifying defects in input rather quickly.
• D) all of the above

---

Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income for accruals.

Reciprocal Method

An accounting technique used in managerial accounting to allocate costs between support departments, taking into account the mutual services they provide to each other.

Sequential Method

An approach to cost allocation in which support department costs are allocated to other support and operating departments sequentially, one after another, based on a predetermined order.

Reciprocal Services

Services exchanged between departments within an organization, used in cost accounting to allocate service department costs to producing departments.