ASC 901 Chapter Notes -Whole-Life Cost, Kaizen, Target Costing
25 Nov 2013
School
Department
Course
Professor
Document Summary
Lo1 explain how value chain analysis, supply chain and jit are used to improve operations. Lo2 explain target costing and calculate target costs. Lo3 explain kaizen costing and compare it to target costing. Lo5 explain lean accounting and discuss how it is used. These learning objectives (lo1 through lo5) are cross-referenced in the textbook to individual exercises and problems. Just-in-time (jit) is an inventory management and manufacturing system where products are manufactured as demanded and raw materials are delivered just when they are needed in the manufacturing cycle. Very little inventory is kept on hand; suppliers deliver small amounts on a regular basis. Organizations adopt just-in-time systems to keep inventory costs down and also to better manage quality because defects are often monitored more closely with jit systems. Systems such as jit are known as demand- pull systems, because demand pulls inventory through the system to the point of sales.
