Throughput Measures the Time

question 62

Multiple Choice

Throughput measures the time

• A) that it takes to process one unit at a station
• B) between the arrival of raw materials and the shipping of finished products
• C) to produce one whole product through an empty system (i.e., with no waiting)
• D) required to move orders through the production process, from receipt to delivery
• E) none of the above

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First In, First Out."

Periodic Inventory System

A system where inventory levels and the cost of goods sold are determined at the end of the accounting period through physical inventory counts.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous transactions.