MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 12, Problem 12.3E

1.

To determine

Introduction: Throughput time is the total time required for the completion of a process. For instance, the time required to manufacture machinery from the beginning till its end is the throughput time. The throughput time comprises process time, inspection time, move time, and queue time. Wait time is not a part of throughput time.

The throughput time.

2.

To determine

Introduction: The manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. It is the time taken by an organization to convert raw material into finished goods. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.

The manufacturing cycle efficiency for the given quarter.

3.

To determine

Introduction: Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer. The throughput time is made up of four elements. It is the total of process time, inspection time, move time, and queue time.

The percentage of throughput time spent in activities that are non-value added.

4.

To determine

Introduction: Delivery cycle time is the total time required to produce as well as deliver the product to the customers. The elapsed time from the procurement of a client order until the final product is dispatched is the delivery cycle time.

The delivery cycle time.

5.

To determine

Introduction: The manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. It is the time taken by an organization in order to convert raw material into finished goods. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.

The new MCE if by using Lean Production the queue time of production is eliminated.

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The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2 $3,000,000 1,950,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 3. 600,000 5,000,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $150,000. Reduce average operating assets by 6.25%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%)
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