Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 19 - Spoilage, Rework, and Scrap - Assignment Material - Questions - Page 754: 19-9

Answer

Two examples of nonfinancial measures of internal-business-process quality: 1. Percentage of Defective Products: The proportion of products manufactured that do not meet quality standards or specifications. This measure helps assess the level of defects in the production process. 2. Manufacturing Cycle Time: The amount of time it takes from the moment an order is received by the production team to when the product becomes a finished good. Monitoring cycle time is crucial for process efficiency and identifying bottlenecks. These nonfinancial measures provide insights into the quality of internal business processes and help in identifying areas for improvement.

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