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JIT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › JIT

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • August 27, 2020 at 2:13 pm #582327
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir could you help me out with this?
    And also justify your answer?

    An important feature of throughput accounting is the assumption of just in time
    processing. Which of the following statements about JIT are true?
    (i) It is only workable if a business can predict demand patterns.
    (ii) It can often force suppliers to become surrogate stock holders.

    Thank you!

    August 27, 2020 at 5:53 pm #582366
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    Please do not simply set me test questions. You must have an answer in the same book in which you found the question, so ask about whatever it is you are not clear about and then I will explain.

    (i) is not true because with JIT they order to meet demand as it occurs rather than estimate in advance.

    (ii) is true because in order to be able to deliver immediately, the suppliers need to hold stock.

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