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Dub Group manufactures household goods. It recently produced estimated activity - based production cost reports for two of its products for one month, as shown:
Dub Group manufactures household goods. It recently produced estimated activitybased production cost reports for two of its products for one month, as shown:
The financial director has asked managers to use the information from the analysis to improve efficiency and lower costs.
Maintenance and cleaning are performed after every batch, each batch size is units. The production manager proposes to increase the batch size to which will reduce production time by per cent. The costs of production are not anticipated to fall because the process will require additional costs to cater for the larger batch sizes.
Identify ONE statement that explains whether this action should be taken:
ACustomers often value faster receipt of goods.
BCustomers are only interested in actions that lead to a reduction in sales price.
CCustomers are not interested in production time.
DCustomers are only interested in steps that improve quality of products and reduce costs.
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