EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
3. a. and b. Month Throughput time in days: 5 6 Process time... 1.8 1.8 Inspection time... 0.7 0.0 Move time ... 0.5 0.5 Queue time during production ... 0.0 0.0 Total throughput time ... 3.0 2.3 Manufacturing cycle efficiency (MCE): Process time ÷ Throughput time... 60.0% 78.3% As non-value-added activities are eliminated, the manufacturing cycle efficiency improves. The goal, of course, is to have an efficiency of 100%. This is achieved when all non-value-added activities have been eliminated and process time equals throughput time. Problem 10-31 (45 minutes) This problem is more difficult than it looks. Allow ample time for discussion.