List and briefly discuss three major differences between just-in-time costing (JIT) and traditional costing
What will be an ideal response
JIT costing does not track the cost of products from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory. Instead, JIT costing waits until the units are completed to record the cost of production.
JIT costing combines Raw Materials Inventory and Work-in-Process Inventory accounts into a single account called Raw and In-Process Inventory.
Under the JIT philosophy, workers perform many tasks. Most companies using JIT combine direct labor and manufacturing overhead costs into a single account called Conversion Costs. The Conversion Cost account is a temporary account that works just like the Manufacturing Overhead account.
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Payment for the acquisition of inventories is shown on the statement of cash flows as
a. An investing activity b. A financing activity c. An operating activity d. Either an operating activity or a financing activity
Theories that try to understand the thought processes by which people decide how to act are called
A. needs-based perspectives. B. reinforcement perspectives. C. job design perspectives. D. cognitive perspectives. E. process perspectives.
Corporate policies designed to attract, train, and evaluate competent employees are considered to be control activities in the COSO framework for internal controls
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT true of frequency and percentage distributions?
A) They quickly communicate how many respondents voted for each of the different answers for a question. B) They reveal how much agreement or disagreement there is among the respondents. C) They express the variability of the respondents' responses. D) The frequency distribution is preferred over percentages because frequencies are intuitive and easy to handle. E) They are tabulations of the responses to a categorical scale question in a survey.