Indicate whether each of the following statements is true or false.
- Just-in-time processing is also known as just-in-case processing.
- Companies that use just-in-time processing complete finished goods just in time to be sold.
- A major benefit of just-in-time processing is enhanced product quality.
- An ABC system is similar to conventional costing systems in accounting for period costs but differs in regard to manufacturing costs.
- The primary benefit of ABC is significant reduction or elimination of manufacturing inventories.
- In recent years, the amount of direct labor used in many industries has greatly decreased and total overhead costs have significantly increased.