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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 25
Profile Productivity Measurement Objective
In 2013, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
Required:
1. Calculate the productivity profile for 2012.
2. Calculate the productivity profile for 2013, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2013 were 112,500? What does comparison of the 2012 and 2013 profiles now communicate?
In 2013, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
Required:
1. Calculate the productivity profile for 2012.
2. Calculate the productivity profile for 2013, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2013 were 112,500? What does comparison of the 2012 and 2013 profiles now communicate?
Explanation
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1.Computation of Productivity Profile fo...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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