According to Little's Law, Which of the Following Can Be

question 24

Multiple Choice

According to Little's law, which of the following can be used to estimate inventory?

• A)Process time/Cycle time
• B)Throughput rate times flow time
• C)Process velocity/flow time
• D)Set up time/Throughput rate
• E)Value added time/Process velocity

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Definitions:

Special Order

An order for goods or services that is outside the company's normal scope of work, which can often require a unique pricing strategy and cost analysis.

Variable Expenses

Costs that fluctuate with business activity levels, such as raw material costs or utilities following production volumes.

Net Income

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

CVP Analysis

Short for Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.