Which of the following statements about processing cycle efficiency (PCE) is not true?
A) It is defined as the ratio of processing time to non-processing time.
B) It is a measure of operating process efficiency.
C) It is based on the relationship between actual processing time and total production time.
D) It incorporates notions of "value-added" and "non-value-added," as discussed in the development of activity-based cost (ABC) systems.
E) The optimum value of PCE is 1.0.
Correct Answer:
Verified
Q54: Which of the following is not an
Q55: Flexible budgets and standard costs, if used
Q56: The term "processing cycle efficiency" (PCE):
A) Like
Q57: A flexible budget contains:
A) Cost targets based
Q58: A favorable cost variance of significant magnitude:
A)
Q60: All the following are limitations of short-term
Q61: Minmax Co.'s direct labor information for
Q62: Europa Company manufactures only one product.
Q63: Lucky Company's direct labor information for
Q64: Minmax Co.'s direct labor information for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents