Cost accounting and performance measurement in a just-in-time production environment

Cost accounting and performance measurement in a just-in-time production environment

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Article ID: iaor2003916
Country: Netherlands
Volume: 16
Issue: 1
Start Page Number: 111
End Page Number: 125
Publication Date: Apr 1999
Journal: Asia Pacific Journal of Management
Authors: , ,
Keywords: production: JIT, measurement
Abstract:

There are normative statements in the literature, backed up by case observations and anecdotal evidence, which indicate that manufacturing companies operating just-in-time (JIT) production management systems should also change their cost accounting systems and place greater reliance on non-financial performance indicators. This study provides empirical evidence suggesting that JIT manufacturing companies which have made some degree of modification to their costing system demonstrate higher performance than JIT companies which have not made changes. The results also suggest that greater use of non-financial performance indicators is associated with higher performance irrespective of the production management system adopted.

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