A manager calculated that her attainable product cost for an accounting period was $29,000. Her actual product cost for the period was $29,580. What was the manager's operational efficiency ratio for this period?

Question

Quizplus · Accepted Answer

The operational efficiency ratio is calculated by dividing the attainable (or standard) cost by the actual cost and then multiplying by 100 to get a percentage. So, the calculation would be ($29,000 / $29,580) * 100 = 98.04%, which rounds to 98%, but since this option is not available, it seems there was a mistake in the interpretation of the question or in the provided options. Given the options, the closest correct approach to calculate an efficiency ratio would typically involve comparing actual costs to standard or expected costs, but the provided answer choices do not align with the correct calculation based on the given numbers.

A Manager Calculated That Her Attainable Product Cost for an Accounting