Figure 16-8 shows two additional kinds of Material Movement relevant to manufacturing. The first is Equipment Utilization.

Here, instead of a quantity of material consumed, the Quantity inherited from Material Movement is interpreted to mean Hours Used of a Discrete Item. This can be multiplied by the Charge Rate of the appropriate Discrete Item to determine the cost of that usage. This then is charged to an Activity that accumulates a set of Actual Utilizations into /Activity Equipment Usage in a manner analogous to the way /Activity Material Usage was calculated above.

Figure 16-8: Adjustments and Utilization

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