Some companies have moved to JIT without changing the substance of their

accounting systems. Relying on the former accounting system may present

problems for management because

managers do not understand the new manufacturing environment.

traditional accounting systems are designed to track items $($labor efficiency, purchase

price, overhead absorption$)$ that are no longer primary concerns of management.

control of cost drivers will be lost.

traditional accounting systems discourage the creation of large inventories that are

necessary to ensure uninterrupted production runs.