A Time-And-Motion Study Revealed That It Should Take 2 Hours

question 123

Multiple Choice

A time-and-motion study revealed that it should take 2 hours to produce a product that currently takes 6 hours to produce. Labor is $8 per hour.
The value-added costs are

• A)$48.
• B)$32.
• C)$16.
• D)$-0-.

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Definitions:

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, indicating financial health and liquidity.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.