The target cost for one of the new ergonomically designed computer mice has been calculated to be £4.50, which is 10% less than the actual cost currently achievable. 4. The Board of Directors is considering providing some intermal training to improve efficiency of labour, and hence reduce the cost gap. The current material cost is £1.40 per unit and this will not change as efficiency changes. Labour rates are £12 per hour. To the nearest whole %, how much of an efficiency improvement (measured by the % reduction in labour time per computer mouse) is required remove the cost gan completely? Show all workings. Which of the following statements made by the CFO regarding life-cycle costing 5. is/are incorrect? A. The maturity phase in a product life cycle is characterised by a rapid build-up in demand All costs should be taken into account when working out the cost of a computer mouse and its profitability A lifecycle costing analysis cannot include environmental costs В. C.
The target cost for one of the new ergonomically designed computer mice has been calculated to be £4.50, which is 10% less than the actual cost currently achievable. 4. The Board of Directors is considering providing some intermal training to improve efficiency of labour, and hence reduce the cost gap. The current material cost is £1.40 per unit and this will not change as efficiency changes. Labour rates are £12 per hour. To the nearest whole %, how much of an efficiency improvement (measured by the % reduction in labour time per computer mouse) is required remove the cost gan completely? Show all workings. Which of the following statements made by the CFO regarding life-cycle costing 5. is/are incorrect? A. The maturity phase in a product life cycle is characterised by a rapid build-up in demand All costs should be taken into account when working out the cost of a computer mouse and its profitability A lifecycle costing analysis cannot include environmental costs В. C.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 6E: Keith Golding has decided to purchase a personal computer. He has narrowed his choices to two: Brand...
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