The Accounting System Used with JIT Manufacturing Is Called

question 57

Multiple Choice

The accounting system used with JIT manufacturing is called:

• A)Backflush costing.
• B)The push system.
• C)Perpetual inventory costing.
• D)First-in,first-out.

---

Definitions:

Operating Expenses

Expenses incurred through the normal operations of a business, including rent, utilities, and salaries, but excluding costs of goods sold.

Vertical Analysis

A financial analysis method that lists each line item in a single period financial statement as a percentage of a base line figure.

Operating Expenses

The day-to-day costs involved in running a business, excluding the cost of goods sold.

Net Sales

Sales revenue minus returns, allowances, and discounts.