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Other comments
§ It is therefore appropriate in a mature just in time (JIT) environment where there is a short production cycle, and inventories are low.
§ It is not appropriate for manufacturing environment where inventory levels are high, due to the problems of counting and valuing the inventory at the end of each period.
§ Controlling production is more difficult under back-flush accounting as detail and variance information is lost. Other aspects, such as non-financial target related to quality, need to be considered instead.
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