Question

A cost accounting system that provides measures at the work cell or process level and minimizes wasteful or unnecessary transaction processes is called ______________ _____________.

a. Activity-based costing
b. Process costing
c. Just-in-time
d. Target costing

Answer 1

A cost accounting system aimed at minimizing waste and unnecessary processes by providing measures at the work cell or process level is known as Just-in-time (JIT).

Step-by-step explanation:

A cost accounting system that provides measures at the work cell or process level and minimizes wasteful or unnecessary transaction processes is called Just-in-time (JIT). This cost accounting strategy is designed to reduce times within the production system as well as response times from suppliers and to customers.

By focusing on the continuous improvement of processes, Just-in-time manufacturing helps in the elimination of waste and activities that do not add value, thereby increasing efficiency and potentially reducing production costs. It differs from other cost accounting systems such as Activity-based costing, Process costing, and Target costing which have varied focuses on cost determination and analysis.