At a Local Fast Food Joint, Cars Arrive Randomly at a Rate

question 41

Multiple Choice

At a local fast food joint, cars arrive randomly at a rate of 12 every 30 minutes.The fast food joint takes exactly 2 minutes (this is constant) .The average total time in the system is

• A)5.4 minutes.
• B)6.0 minutes.
• C)8.0 minutes.
• D)2.5 minutes.

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Definitions:

Standard Price

A predetermined cost attributed to materials, labor, and overhead to facilitate budgeting and variance analysis.

Efficiency Standard

A benchmark for measuring the optimal use of resources in the production of goods or the delivery of services.

100% Efficiency

A theoretical situation where all resources are utilized to their maximum capacity without any waste, often used as a benchmark or target in productivity and operations management.

Variances

Differences between planned figures and actual performance or results, often analyzed in budgets and standard costing.