Given the Following Information,the Efficiency Is: Effective Capacity = 20

question 36

Multiple Choice

Given the following information,the efficiency is: Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day

• A)25%
• B)33%
• C)50%
• D)75%
• E)80%

---

Definitions:

Lean Production

A manufacturing methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Work Centers

Specific locations within a manufacturing operation where specific tasks or groups of tasks are carried out.

Conversion Cost

The total cost of direct labor and manufacturing overhead to convert raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.