Indicate whether each of the following statements is true or false.

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