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JIT and Management Accounting
Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect the mode from a traditional manufacturing to a JIT manufacturing system.
Conventional management accounting systems can encourage behavior that is inconsistent with JIT philosophy, management, accounting must support JIT manufacturing by monitoring, identifying, and communicating to decision makers any delays errors and waste in the system.
Modern management accounting systems are now placing greater emphasis on providing information on suppliers relialibility set up times cycle times, percentage of deliveries that are on time and defect rates
All these measures are critical in supporting JIT manufacturing philosophy.
Steady state condition In many cases, the Markov process will converge to a steady state or equilibrium. In general, as number of transitions `n' increase, the state values
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Determine the Profitability ratios in relation to investment a) Return on capital employed/ return on investment b) Return on equity or return on equity share holders' funds
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