From an accounting point of view, one implication of an effective just-in-time inventory system is that:

Select one:

a. Sales transactions must be recorded using on-line point-of-sale terminals.

b. Inventories are less material in dollar amount and alternative inventory flow assumptions will produce more similar results.

c. The cost of goods sold is significantly reduced.

d. Purchases of merchandise are recorded as cash payments are made, and sales transactions are recorded as cash is received.