MANAGERIAL ACCT W/CONNECT >IC<
MANAGERIAL ACCT W/CONNECT >IC<
15th Edition
ISBN: 9781259405303
Author: Garrison
Publisher: MCG
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Chapter 11, Problem 8Q
To determine

Manufacturing Cycle Efficiency:

It is an internal business performance parameter with respect to manufacturing processes and industries. It measures the total time taken by value added activities in relation to the throughput time.

Throughput time is the sum of time taken by value adding and non-value adding activities in the manufacturing process.

Examples of Value added activities − Process based activities.

Examples of Non Value added activities − Inspection of goods, Movement of raw materials , Queuing in production process etc.

  • Meaning of Manufacturing Cycle Efficiency less than 1.
  • Interpretation of Manufacturing Cycle Efficiency of 0.40

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