GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
4th Edition
ISBN: 9781259911682
Author: Eric Noreen
Publisher: McGraw-Hill Education
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Chapter 12, Problem 12.8Q
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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