The study of just in time production system with respect to cost accounting and finance

Firms have, again, focused on manufacturing operations to gain acompetitive advantage since competition among companies and amongcountries has been highly increased in recent decades. This movementprompted companies to invent new approaches in production such as usingnew process and flow technology, new stock systems and material usagetechniques, new computer-based methods in production, engineering anddesign, and new approaches in managing team works. The mostimportant one and the most effective one among these approaches is Just inTime (JIT) which is based on holding the least, or minimum, stock level inmanufacturing process, that is, which is to reduce the stock level inmanufacturing as much as possible and which is based on implementingTotal Quality Management (TQM) program. JIT targets to produce the high-quality products with the least cost, and to response the fast-changingcustomer demands in time.Firms need to change their manufacturing methods, organizationalprocesses, human resource policies and accounting systems due to high-tech JIT system usage in production because it has been seen that old outmoded, cost accounting methods were not adequate and not suitable for newproduction system, i.e., JIT. Therefore, companies stopped applyingtraditional cost accounting methods in their structure. Issues in design-cost,depreciation, data mining and distribution, and developments in technologyand production systems are the reasons why firms have changed theiroperations in cost accounting.The purpose of this study is to identify the effects of JIT, which is theresults of global competition and technological developments in production,on companies cost accounting and finance systems.