Managerial Accounting?

Question

Would you advice a controller(The manager in charge of of the accounting department)to ignore a situation,where a company is not using JUST-In-Time Purchasing,particulary since he is not the purchasing agent?
In preparing your answer,consider the IMA's standards of ethical Conduct?

Answer 1

Depends on the total responsibility of the Controller. If the Controller also is responsible to management in providing any strategic opinions in maximaxing operations, then you shouldn't advise the Controller to ignore Just-In-Time (JIT) Purchasing. But if the Controller's sole responsibility is to assure monthly financials are done and internal control of the company are intact (which can be done with out JIT system), then I don't see a problem of you advising the Controller to ignore JIT.