Some Companies Have Moved to JIT Without Changing the Substance

Multiple Choice

Some companies have moved to JIT without changing the substance of their accounting systems.Relying on the former accounting system may present problems for management because

A) traditional accounting systems are designed to track items (labor efficiency, purchase price, overhead absorption) that are no longer primary concerns of management.
B) control of cost drivers will be lost.
C) managers do not understand the new manufacturing environment.
D) traditional accounting systems discourage the creation of large inventories that are necessary to ensure uninterrupted production runs.