Which of the Following Best Describes the Term "Cycle Time

question 2

Multiple Choice

Which of the following best describes the term "cycle time"?

• A) Average time between completions of successive units
• B) Ratio of the time a resource is activated over its use
• C) Can be no more that 60 minutes
• D) The same as utilization
• E) The labor content of the item being measured

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Definitions:

Variable Costs

Expenditures that adjust in alignment with production levels or sales quantities, notably including labor and raw materials.

Fixed Costs

Costs that do not vary with the level of production or sales activities, such as rent, salaries, and insurance premiums.

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not proportionally.

Fixed Costs

Fixed costs, including items like rent, salaries, and insurance, do not vary based on the amount of goods produced or sold.