In Time Studies, Average Observed Time for an Element Is

question 108

Multiple Choice

In time studies, average observed time for an element is

• A) the ratio of normal time to standard time
• B) the difference between normal time and the allowance factors
• C) for all observations, the sum of all times recorded divided by the number of observations
• D) the percent of a worker's time spent performing that element
• E) how many observations must be taken in order to achieve a specified level of accuracy

---

Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance payments.

Diminishing Marginal Product

Diminishing marginal product occurs when adding an additional factor of production results in a lower increase in output, embodying the principle of decreasing returns.

Production Function

A mathematical representation of the relationship between inputs (like labor, capital) used in production and the output of goods and services that results from those inputs.