Jit purchasing arrangements-jit benefits, Managerial Accounting

Assignment Help:

JIT purchasing arrangements

JIT philosophy also extends to adapting JIT purchasing techniques whereby delivery of material immediately precedes their use. By arranging with suppliers for more frequent deliveries stocks can be out to a minimum
Considerable savings in material handling expenses can be obtained by requiring suppliers to inspect materials before their delivery and guarantee their quality.

This improved service is obtained by giving more business to fewer suppliers and placing long tern purchasing orders, therefore the suppliers has an assurance of long term sales and can plan to meet this demand.

Companies that have executed JIT purchasing techniques have claimed to substantially reduce their investment in raw materials and work in progress stocks.

Other benefits comprise:

1. Considerable savings in factory space.
2. Big amount discount.
3. Savings in time from consulting with less suppliers
4. Reduction in paper work arising from issuing (long term orders) to a few suppliers rather than individual purchase order to many suppliers.


Related Discussions:- Jit purchasing arrangements-jit benefits

What value can management derive from a balance scorecard, What value can m...

What value can management derive from a Balance Scorecard? How does the management accountant contribute?

What is pricing under decline stage, Q. What is Pricing under decline stage...

Q. What is Pricing under decline stage? Pricing under decline stage: under this stage sales are at their highest point. He should reduce the price if necessary taking the compe

Determine the total labour variance, Problem: Fancy Foods Ltd uses a st...

Problem: Fancy Foods Ltd uses a standard costing system to control its material and labour costs. The standard costs for January 2007 were as follows. Standard Costs Materi

Cash and treasury management, Cash is a significant current asset for the o...

Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and l

Analysis of credit file, Analysis of Credit File: Credit file is a compila...

Analysis of Credit File: Credit file is a compilation of each the relevant credit information of the customer. All the credit information collected throughout the credit informati

Explain zero base budgeting, Introduction of zero base budgeting Steps ...

Introduction of zero base budgeting Steps involved in the introduction of zero base budgeting 1) Corporate objectives should be established and laid down in detail 2) Dec

Accounting concepts, implications of applying accounting concepts wrongly

implications of applying accounting concepts wrongly

Qt, x+2y+3z=6 2x+4y+z=7 3x+2y+9z=14

x+2y+3z=6 2x+4y+z=7 3x+2y+9z=14

Explain the process of financial intermediation, Question 1: i) Explai...

Question 1: i) Explain the process of financial intermediation and discuss the existence of banks. ii) Examine the implications of the existence of financial intermediarie

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd