MANAGERIAL ACCOUNTING CONNECT ACCESS
MANAGERIAL ACCOUNTING CONNECT ACCESS
17th Edition
ISBN: 9781265750879
Author: Garrison
Publisher: MCG
Question
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Chapter 12, Problem 20P

1.

a.

To determine

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.

To determine

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.

To determine

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.

To determine

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.

To determine

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.

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