CIMA Advanced Management Accounting P2 Question # 45 Topic 5 Discussion

CIMA Advanced Management Accounting P2 Question # 45 Topic 5 Discussion

P2 Exam Topic 5 Question 45 Discussion:
Question #: 45
Topic #: 5

A company produces a single product which is sold to one customer.

Components for the product are stored in a warehouse and when required for production they are inspected. Those passing the quality check are moved to the initial production line. Part-completed items are then inspected and those passing this second quality check are moved to the warehouse until required in the finishing process. After the finishing process the products are inspected, packaged and returned to the warehouse until required by the customer.

The company is considering implementing a full just-in-time (JIT) system for both purchasing and production and has asked your advice about the activities that will be necessary if this system is implemented.

Which THREE of the following activities will definitely be required in the proposed JIT system?


A.

Components received


B.

Components inspected


C.

Product manufactured


D.

Part finished product inspected


E.

Finished product stored


F.

Finished product despatched to customer


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