© 2014 Research Academy of Social Sciences http://www.rassweb.com 116 Journal of Empirical Economics Vol. 2, No. 3, 2014, 116-128 Just-In-Time Cost Accounting System and Social Economic Factors Affecting Its Adoption by Nigerian Firms Emmanuel Amaps Loveday Ibanichuka 1 , Oyadonghan Kereotu James 2 Abstract 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. Key Words: Just-in-time, Accounting, Cost, System, Factors and Nigeria. 1. Introduction Just-in-time as the name implies is to produce goods just-in-time for sale or use. According to Omoregie, (2002) Just-in-time manufacturing is best described as a philosophy of management dedicated to the elimination of waste. It’s intended to avoid situations in which inventory exceeds demand which places increased burden on business to manage such extra inventory. Colin (2008) identified two cardinal objectives of just-in-time which are, Elimination of all activities that do not add value to a product or service. The emphasis is on simplification and increased visibility to identify activities that do not add value to a product. Similar to this is Akbar et al (2013), view that Just-in-Time objective is to reduce the amount tied up in inventories of raw materials and finished goods. Just-in-time system had its origin in Japan in the 1970s. It was introduced by Taichi Ohno, vice president of Toyota manufacturing cooperation. Japan after World War II had a devastating economy which affected their manufacturing sector? Enormous defects, such as rising cost of production, production delays existed in their manufacturing sector. Most of the Japanese manufacturers wanted to develop a good manufacturing technique aimed at revamping their manufacturing sector and developing the economy. They also wanted to gain the most efficient use of their limited resources as well as meeting customers demand (Colin, 2008)), (Ohno 1997). Ohno and his associate started by examining the American Industry involve in the production of cars and found out that it was based on the traditional idea where several parts in assembling a car are being 1 Department Of Accounting, Faculty Of Management Sciences, University Of Port-Harcourt, Port-Harcourt 2 Department Of Accounting And Finance Niger Delta University, Wilberforce Island, Pmb 071, Yenagoa, Bayelsa State,Nigeria