cost ch 13 - 134 a. b. c. d. e. f. g. h. i. j. k. l....

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13–4 a. Customer, Nonfinancial, Subjective, External b. Process (postsales), Nonfinancial, Objective, External c. Financial, Financial, Objective, External d. Financial, Financial, Objective, External e. Learning and growth, Nonfinancial, Subjective, Internal f. Process (operations), Nonfinancial, Objective, Internal g. Customer, Financial, Objective, External h. Process (innovation), Nonfinancial, Objective, Internal i. Learning and growth, Nonfinancial, Objective, Internal j. Customer, Financial, Objective, External k. Financial, Financial, Objective, External l. Process (operations), Nonfinancial, Objective, Internal 13–5 1. Theoretical rate = $4,320,000/960,000 = $4.50 per minute Theoretical conversion cost per unit = $4.50 × 48 = $216 2. Applied conversion cost per unit = $4.50 × 100 = $450 Note: 60/0.6 = 100 minutes used per unit. 3. An incentive exists to reduce product cost by reducing cycle time. For example, current cycle time is 100 minutes per unit. If cycle time could be reduced to 48 minutes per unit, conversion costs would be reduced from $450 per unit to $216 per unit, reducing the unit product cost by $234. Reducing cycle time increases the ability to meet deliveries on time as well as increasing the ability of the firm to respond quickly to customer demands. Conversion cost is a performance driver for on-time deliveries because reducing conversion
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This homework help was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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cost ch 13 - 134 a. b. c. d. e. f. g. h. i. j. k. l....

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