The value added manufacturing time is divided by total manufacturing, is to calculate

Correct answer: D. manufacturing cycle efficiency

  • A. value chain efficiency
  • B. value chain effectivity
  • C. manufacturing cycle effectivity
  • D. manufacturing cycle efficiency

Explanation

Dividing value-added manufacturing time by total manufacturing time measures manufacturing cycle efficiency. It shows the proportion of total production time that actually adds value.

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About Cost Accounting

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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