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Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made.
Assuming no other cost savings can be made the direct labour cost would have to reduce by $1,903 (i.e. the excess of cost above the target cost) to a total cost of $6,600 which is the equivalent of 660 hours at $10 per hour. 660 hours in total represents an average time of 10.3125 hours per batch (660 / 64 batches) Since the learning continued throughout the production of the 64 batches then this average can be used to determine the rate of learning required to achieve the target variable cost. 64 batches of production represent 6 doublings of cumulative output therefore: 10.3125 / 25 = 0.4125 6√0.4125 = 0.8628 The learning rate at which the target variable cost would be achieved is 86.3%
Atlanta Company stock is expected to follow an exponential growth rate. The relationship between the current stock price P0, future price PT after time T, and the continuously comp
Absorption Costing, Marginal Cost and Marginal Costing Absorption costing is most often utilized for routine profit reporting and must be utilized for financial accounting rea
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Q. Show the Break-even charts? Refers graphically profit and losses at different levels of sales volume achieved. When sales revenue is greater than total cost it m
XYZ Corporation recieves $100,000 from investors for issuing them shares of its stock. XYZ's journal entry to record this transaction would include a a debit to investment b
sorption costing
What is idle time for Fast Moving,Slow Moving,Non Moving, and Dead Stock??? Thanks in Advance. Santosh K Jha
what is the concept
Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe
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