Management Accounting Systems, Just-in-time Manufacturing and Return on Investment

Subject Areas : Futurology

F. Rahnema Rodposhti ¹

1 - ندارد

Received: 2015-01-13 Accepted : 2015-01-13 Published : 2006-03-21

Keywords: JIT. Management accounting sys, Profitability, ROI, Non-JIT,

Abstract :

Abstract: This paper is Result of Empirical Research. So Relationship Bitween Three Variable That is (JIT),(MAS) & (ROI) in Lokman Mia Study do tested on Real Data in Tehran Exchange.Managers working in just-in-time manufacturing environments have little or no slack resources available tothem to cushion against the difficulties caused by defective raw materials. Production errors. Irrregularsupply and demand schedules or to mask inefficiencies (Griffin and Harrell, 1991). This makes theperformance-related information provided by management accounting systems critical in such environments.This reports the results of a study that empirically tested the above statement. It was done by evaluating theimpact of adoption of just-in time manufacturing (JIT) and the Information provided by the managementAccounting system (MAS) on organizational performance (profitability & ROI). Data fo the study werecollected through personal intrrviews with financial controllers of 55 organisation located in TehranExchange Company. Of these organisation, 28 adopted JIT at least three years prior to the study and the restwere non-adopters the time of the study. The results suggest that the JIT adopter organisations witg high(low) provision of the information earn high (low) profit. The study supports the argument that adoption ofJIT and profitability Also this results suggest that integration JIT & MAS in decision making to promotprofitability.