Travis Corporation Keeps Track of the Time Required to Fill

question 106

Multiple Choice

Travis Corporation keeps track of the time required to fill orders. The times recorded for a particular order appear below:
$$\begin{array} { | l | r | } \hline & \text { Hours } \\\hline \text { Processing Time } & 0.7 \\\hline \text { Inspection Tirne } & 0.3 \\\hline \text { Moving Time } & 2.5 \\\hline \text { Storing Time } & 8.7 \\\hline\end{array}$$
The manufacturing cycle efficiency was closest to:

• A) 0.73.
• B) 0.06.
• C) 0.15.
• D) 0.02.

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Definitions:

Depreciation Factory Equipment

The systematic reduction in the recorded cost of factory equipment over its useful life, reflecting wear and tear or obsolescence.

Utility Costs Factory

The expenses for utilities (electricity, gas, water, etc.) incurred in the operation of a manufacturing plant or facility.

Product Costs

Costs that are directly associated with the manufacturing of goods, including materials, labor, and overhead.

Customer Support

Services provided by a company to its customers to assist with product-related queries, problems, or returns.