1.
a.
Throughput time: It is the total time required for the completion of a process. For instance, the time required to manufacture machinery from the beginning till its end is the throughput time. The throughput time comprises process time, inspection time, move time, and queue time. Wait time is not a part of throughput time.
The throughput time for each month.
1.
b.
Delivery cycle time: It is the total time required to produce as well as deliver the product to the customers. Basically, the elapsed time from the procurement of a client order until the final product is dispatched is the delivery cycle time.
The delivery cycle for each month.
1.
c.
Manufacturing cycle: This refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. Basically, it is the time taken by an organization in order to convert raw material into finished goods.
The manufacturing cycle efficiency for each month.
2.
Performance indicators: Throughput time, manufacturing cycle efficiency, and delivery cycle time are all such indicators that help in analyzing the company’s performance. Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer, manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product, and delivery cycle time is the total time required to produce as well as deliver the product to the customers.
To evaluate: The company’s performance over the last four months.
3.
a.
Throughput time: Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer.
Manufacturing cycle efficiency: Manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product.
The throughput time and MCE for Month 5.
Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
Managerial Accounting
- Need true answer general accountingarrow_forwardExpert of general accounting questionsarrow_forwardSales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating income increased from $12,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 2.56 b) 3.08 c) 3.75 d) 5.05 help me with thisarrow_forward
- Provide correct option with calculationarrow_forwardGiven true answer general accountingarrow_forwardSales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating income increased from $12,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 2.56 b) 3.08 c) 3.75 d) 5.05arrow_forward
- Office Haven is an office supply store. Office Haven's revenue in the current year is $950 million, and its cost of goods sold is $720 million. Compute Office Haven's gross profit and its gross profit percentage.need answerarrow_forwardCalculate the debt to equity ratio general accountingarrow_forwardExpert of general accounting answerarrow_forward
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning