Cost Accounting 240 Chapter 11

An MCE of less than 1 means

An MCE of less than 1 means that the production process includes non-value added time. An MCE of 0.40 means that 40% of throughput time consists of actual processing, while the other 60% consists of moving, inspection, and other non-value-added activities.

spread throughout the organization

In decentralized organizations, decision-making authority is

-residual income -return on investment

Which of the following evaluation measures are used for investment center managers only--not for cost or profit center managers?

-sales/average operating assets -net operating income/sales

Which of the following ratios are part of the ROI formula?

Profit Investment

the manager of a profit center has control over both costs and revenues, but not over the use of investment funds