Continuous Flow vs. Departmental Manufacturing Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. ________________________ fill in the blank 1 minutes
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Continuous Flow vs. Departmental Manufacturing
Mabbut Company has the following departmental manufacturing layout for one of its plants:
Required:
1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout.
________________________ fill in the blank 1 minutes
2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units?
_________________________fill in the blank 2 minutes
Assuming the cell operates continuously, what is the production rate?
_________________________fill in the blank 3 units per hour
Which process controls this production rate?
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