1. Indicate whether each of the following statements is true or false. JIT AND ABC
1. Continuous process manufacturing often results in a reduction of inventory.
2. Companies that use just in time processing complete and store finished goods all the time to meet rush orders from customers.
3. A major benefit of just in time processing is production cost savings from the improved flow of goods through the processes.
4. An ABC system is similar to traditional costing systems in accounting for manufacturing costs but differs in regard to period costs.
5. The primary benefit of ABC is more accurate and meaningful costs.
6.
In recent years, the amount of direct labor used in many industries has greatly increased and total overhead costs have significantly decreased.
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