Assume Home Depot is trying to decide which automated production line to use to produce sellable cardboard moving boxes. Suppose the two best systems under consideration have the following estimated performance characteristic based on minutes per 1,000 boxes produced. Setup time Movement time from start to finish Waiting time Inspection time Processing time Total time in minutes REQUIRED System A System B 50 20 20 28 System A System B 6 10 80 166 A a. Determine the cycle time per batch for each system in minutes. Cycle Time per Batch in Minutes b. Which system cycle is most efficient? + 32 14 60 154 Please answer all parts of the question.
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.
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