If an Assembly Line Has an Efficiency of 80% with 3

question 22

Multiple Choice

If an assembly line has an efficiency of 80% with 3 workcenters, how would adding a fourth workcenter affect assembly line efficiency?

• A) Efficiency would increase
• B) Efficiency would decrease
• C) Efficiency would not change
• D) Efficiency would increase, but may become infeasible

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Definitions:

Exchange Rates

The conversion rate of one currency to another.

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the income earned from lending funds or making an investment.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability, or an unrecognized firm commitment, that is attributable to a particular risk.

Forward Contract

A financial contract obligating the buyer to purchase, and the seller to sell a specific asset at a predetermined future date and price.