Just in Time (JIT) is a business strategy involving inventory management that helps organizations realize greater profitability through reduced costs. JIT can not only positively affect the organization's return on investment, but also their efficiency, quality, and overall competitiveness within the marketplace. As such, when implemented correctly, it can be a powerful tool for organizations. One of the areas that JIT affects is accounting. This paper discusses how JIT affects accounting as well as the future of JIT method of accounting.
             JIT is a business philosophy that focuses on simplification and the process of continually reducing waste in all facets of an organization's activity. Teamwork and continuous improvement are the cornerstones of JIT. Traditional accounting techniques, including standard costing and variance analysis, traditional budgeting and cost volume profit analysis, are not as useful in the JIT manufacturing environment. JIT is a dynamic business environment that requires equally dynamic accounting practices, such as target costing, that can assist the organization in increasing their global competitiveness (Sulaiman, Ahmad, & Alwi, 2004). The use of these contemporary accounting methods has been significantly due to the implementation of the JIT philosophy within the organization.
             One of the primary goals of JIT is zero ending inventory, as such one of the primary affects of JIT is that many organizations rely on a backflush cost system where costs are accumulated in fewer inventory accounts than what are normally present in job order or process cost methods. In extreme cases, many accounting records are eliminated (Martin, n.d.).
             With JIT, the production facilities are laid out in self-contained manufacturing cells that are assigned to the production of a single or similar products. For this reason, "manufacturing costs become direct product costs and fe
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