Analyze the effect of the management accounting practice that you Essay

Analyze the effect of the management accounting coiffure that you identified on the devoteds activities and financial movement - Essay ExampleIn this accounting practice, raw materials and the finished products are at minimum. A firm that adopts this practice applies total direct labor to overhead. Moreover, unremitting production, high-quality product, minimum labor utilization, and batch size, flexible and effective systems characterize just-in-time accounting practice. The practice is very popular and effective in the manufacturing industry (Investopedia, LLC 1).Just-in-time accounting practice has both positive and negative impacts on firms activities and financial performance. The practice reduces enumeration costs but firms incur costs in inventory management. The firm can invest its savings derived from inventory costs in other ventures that will boost the firms growth and development in the accounting and finance sector (Kokemuller 1). A firm experiences continuous devel opment and growth in its production process. Just-in-time accounting practice enhances quality in a comp whatever. For a firm to succeed in its production process with minimum costs, it must focus on quality. After customers order their goods and get receipts, a firm that adopts this accounting practice investigates any case of defective goods in a condition sample size. In case the number of defects is more than a given range, the whole sample size is not accepted to maintain quality. In a just-in-time accounting practice, a firm should buy raw materials from a particularised supplier and not several suppliers that promotes confidence in their suppliers and ensures that what they offer is of good quality.Just-in-time accounting practice aims at improving the productivity of a firm. The system eliminates any equipment that is not operating in the firm or the production process. The firm reduces waste by promoting the conversion of all the raw materials into finished products. A red ucing in inventory errors minimizes reworks and time wastage that enhances efficiency. Low