Managerial Accounting for Managers
Managerial Accounting for Managers
5th Edition
ISBN: 9781260480337
Author: Noreen, Eric
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 11, Problem 11.8Q
To determine

Concept introduction:

The manufacturing cycle efficiency is a ratio that indicates the ratio between the value-added time and production time. The formula to calculate the manufacturing cycle efficiency is as follows:

Manufacturing cycle efficiency (MCE) = Value added time/ Total production time

To indicate: the meaning of manufacturing cycle efficiency of less than 1 and 0.40.

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