2.1 Determining and controlling costs: Just-in-time (JIT costing)
Costing is a very important strategy in business operations. Managing resources and
having true costs are essential to business operations and entrepreneurial activities. Just-in-time
(JIT) costing is a contemporary approach that focuses on reducing waste, values and activities.
(Onat, et al 2014) Knowing the condition of the business lies with the business managers and
owners. They must may attention to what is going on with their business and JIT is one
approach in doing so. JIT relates to the Bible in many ways. One way is through Proverbs
27:23-28 (NIV). Proverbs 27:23-28 (NIV), says that we should be mindful of our businesses and
not trust someone else to look after “your” work. This verse also reminds us that we should
handle each task as it comes, in the proper order and being good stewards of our resources.
Being in charge of business operations means that you must take good care of your business and
managing costs is one way to do so. When managing business resources, one must be diligent in
all business operations and business opportunities as not to create waste. Even if this means
doing the work that must be done instead of handing it off to someone else to do. JIT differs
from traditional costing methods due to the emphasis placed on function and value. Traditional
methods failed in adequately handling overhead costs. Contemporary costing methods like JIT
focus more on adding value to the activities, which allows for better planning and budgeting for
future activities. (Onat, et al 2014)
2.2 Planning and budgeting of managerial accounting in bible
One of three keys of managerial accounting is planning future activity (John, 2017, p.4).
Planning is also one of three elements of managerial accounting in the decision-making process
