Faculty of business department of accounting an assessment of fixed asset managementin the

c. Just -in-time Inventory Management
A relatively new concept in inventory management, Just-in-time inventory management (JIT), 
was designed for Toyota by the Japanese firm Shigeo Shingo and found its way to the United 
States. Just -in-time inventory management is part of a total production concept that often 
interfaces with a total quality control program. A JIT program has several basic requirements 
such as Quality production that continually satisfies customer requirements, close ties between 
suppliers, manufacturers, and customers; and Minimizing the level of Inventory (Stanley and 
Geoffrey,2009:125)
Usually suppliers are located near manufacturers and are able to make orders in small lot sizes 
because of short delivery times. One side effect that has been for manufacturers are to reduce 
their number of suppliers to assure quality as well as to ease the complexity of ordering and 
delivery. Computerized ordering/inventory tracking systems both on the assembly line and in the 
supplier’s production facility are necessary for JIT to work.
In one sense the manufacturer pushes some of the cost of financing on to the supplier. If the 
supplier also imposes JIT on its suppliers, these efficiencies work their way down the supplier 
chain to create a leaner production system for the whole economy.
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It is important to realize that the Just-in-time inventory system is very compatible with the 
concept of economic ordering quantity. The focus is to balance reduced carrying costs from 
maintaining fewer inventories with increased ordering costs. Fortunately electronic data 
interchange minimizes the impact of having to place orders more often (Stanley and Geoffrey, 
2009:130).
2.13. Secondary data Collection
• The organization assumed that assets serve for a period of more than one year having a value 
of birr 1000 and above that are easily identifiable form other assets are classified as fixed 
assets.
• To inspect whether the fixed properties of the organization are used and applied properly is 
one of the duties to be exercised.
• Maintenance of ownership certificates and documents for those assets while need to have 
such certificates, and taking annual counting of assets to ascertain their existence.
• Where the acquisition cost of a fixed asset is assumed to be very high, such expenditure 
allowed provided that ask the necessary assessment have been carried out and it is believed 
that the asset adds values to the efficiency of the organization such assets should be put in to 
operation following their acquisition.
A fixed asset register card, which shall be used to record every fixed asset separately in 
compliance with its history and the book of fixed asset registration, shall be handled through the 
fixed asset management section. This card and registration book shall have to contain, the name 
of the assets, the group, the code, the date of purchase, its value of the amount of deprecation to 
be deducted and the form to be used for this purpose is annexed with this. It is possible to record 
number of items of fixed assets together at once in a case a purchases is or one and are to be used 
in a great deal ,or they can be recorded at the same time with quantity of the items expressed in a 
single card of fixed assets (Barth and Beaver, 1998; 218).