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With improvements in the virtually every industry, maintaining an effective production line while minimizing inventory costs is a very feasible option. Just-in-time systems are designed to keep inventory costs at a minimum. Most performance measures are derived from the cost accounting information that is provided the finance department. The most two know costing system are the job-order costing, and the process costing. Both systems try to allocate the cost across the unit produced. This allocation process is known as the absorption rate. Audits and control is another tool that can be used to ensure proper collection of data, and proper analyzing of these data in the processes.
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