Purchase Solution

Compare and contrast JIT and ABC methods

Not what you're looking for?

Ask Custom Question

What are some of the main differences between just-in-time processing and activity based costing? Why has JIT become so popular in some industries? Why haven't all of ABC processes moved to JIT? Toyota was one of the first companies to use JIT on a large scale, would it make sense to use JIT and ABC?

Purchase this Solution

Solution Summary

This response (292 words) compares and contrasts just in time and activity based costing methods and indicates when each method makes the most sense. The discussion is in everyday language and geared for beginning to intermediate.

Solution Preview

JIT and ABC really solve different production problems. JIT attempts to reduce the size of work-in-process (WIP) by only starting or adding materials and activity when it is needed, and not before. ABC, on the other hand, attempts to assign overhead to products and jobs based on the resources actually used rather than a summarize predetermined overhead rate (based on overall overhead budget and one cost ...

Solution provided by:
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution

Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.