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    Management Accounting for Business
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    Exam 14: Cost Management
  5. Question
    Setup Time for a Product Is 12 Hours
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Setup Time for a Product Is 12 Hours

Question 93

Question 93

Multiple Choice

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labour is £6 per hour. The value-added costs are


A) £72.
B) £66.
C) £12.
D) £6.

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