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Hello Mr.Moffat
I was going through chapter 5 of the lecture notes which is “Throughput accounting” in which i found this one sentence : https://i.imgur.com/v5rY5lV.jpg
What is a JIT environment?
I googled it and found links stating JIT stands for Just in time, still it didnt make sense please explain more about it sir.
Thanks in advance.
Throwing some light with my limited understanding:
JIT implies that the company does not maintain inventory and this goes well with the throughput accounting as it assumes that only the material cost is variable in the short term.
nitint: You are correct, but please do not answer in this forum, because it is Ask the Tutor (although please do help people in the other F5 forum).
Surajnagesh: nitint is correct. And yes – TA ratio is throughput accounting ratio.
However you should not be using the lecture notes without watching the free lecture – they are just lecture notes and it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you should buy a Study Text from one of the ACCA approved publishers and study from there.
Apologies John. I am new to this site so still learning how to use various forums.
I will keep this in mind going forward.
Thanks,
Nitin
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