The Following Information for a Recent Project Was Taken from the Records

question 3

Essay

The following information for a recent project was taken from the records of Garvin Company:
A.How long did it take to complete the project once production commenced?
B.Compute the manufacturing cycle efficiency.
B.Processing time (15.0)/ [Processing time (15.0)+ inspection time (0.5)+ waiting time in production (3.0)+ move time (1.5)] = 0.75
C.1.75% (cycle efficiency)
2.25% (100% - 75%)
C.As judged by the cycle efficiency,what percentage of the overall production time was spent on (1)value-adding activities and (2)non-value adding activities?

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Definitions:

Marginal Firm

A business that operates at the minimum level of profitability where any decrease in market prices would cause it to exit the market.

Accounting Profits

Accounting profits represent the financial gains of a business as calculated by revenue minus explicit costs, according to standard accounting practices.

Profit-Maximizing

A method or strategy that firms use to achieve the highest possible profit from their operations.

Economic Profit

The variance between a company's overall income and its opportunity expenses, covering both direct and indirect costs.