Just-In-Time Cost Accounting System and Social Economic Factors Affecting Its Adoption by Nigerian Firms

Just in time costing in inventory, purchase and production and accounting for such transactions are considered to be much better for record keeping and financial information disclosure as compared with the traditional method of accounting for stock keeping. The advantages in most times seems to be unknown by firms in the developing world. A critical review of various literatures shows that most managers of manufacturing firms known. This gives rise to the desire of the researchers to find out the factors affecting its adoption in developing countries like Nigeria and others. To achieve this objective, the researchers used a well structured questionnaire to collect primary data from top management staff of selected manufacturing firms that are equally quoted in the Nigerian Stock market. The data generated was analysed with simple regression statistical tool, using E-View soft ware version3.1. The findings revealed that level of technological advancement, culture, management commitment, awareness and other factors are responsible for its adoption. Therefore, the researchers recommended that effective training programmes for managers and staff should be regularly organised. Also Government should engage in more infrastructural development activities and provide a high capital allowance for firms for adopting just-in-time system of accounting and production.