{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

cost ch 13

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

This preview shows pages 1–2. Sign up to view the full content.

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.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern