Which of the Following Would Not Be Considered If a Company

question 46

Multiple Choice

Which of the following would not be considered if a company desires to establish a series of practical manufacturing standards?

• A) Production time lost during unusual machinery breakdowns.
• B) Normal worker fatigue.
• C) Freight charges on incoming raw materials.
• D) Production time lost during setup procedures for new manufacturing runs.
• E) The historical 2% defect rate associated with raw material inputs.

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Definitions:

Sales Increase

An upward change in the quantity or value of goods and services sold by a company, indicating growth in revenue.

Units Budgeted

The estimated quantity of units of production or sales that a company plans to achieve during a specific period.

Direct Cost

Expenses that can be directly tied to the production of specific goods or services, such as raw materials and labor.

Cost Object

An item for which costs are measured and assigned, which can include products, services, projects, or customers.