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Management · Q40

Management Accounting

Graduate and Post Graduate · Management · question 40

Q40

If value added manufacturing time is 65 minutes, total manufacturing time is 80 minutes, then manufacturing cycle time will be

A.
0.8125
Answer
B.
0.6125
C.
0.9125
D.
1.725

Answer: Option A

Solution

Answer: Option A
Solution:
Cycle manufacturing time = Value added manufacturing time ÷ Total manufacturing time
= 65 minutes ÷ 80 minutes
= 0.8125