If the value added manufacturing time is 65 minutes, the total manufacturing time is 80 minutes, then the manufacturing cycle time will be _________?
Correct answer: A. 0.8125
- A. 0.8125
- B. 0.6125
- C. 0.9125
- D. 1.725
Explanation
Manufacturing cycle efficiency is value-added manufacturing time divided by total manufacturing time: 65 ÷ 80 = 0.8125. The result can also be expressed as 81.25%.
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Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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