Scenario 2.3 A Job Consists of Three Elements. Twenty Observations for Each

question 29

Multiple Choice

Scenario 2.3
A job consists of three elements. Twenty observations for each element were timed, and the resulting data are shown in the following table. A performance rating has also been assigned for each element, as shown in the table. The job has an allowance of 15% of normal time.

-Use the information in Scenario 2.3. What is the normal time for job element #2?

• A) greater than or equal to 3 minutes
• B) less than 3 minutes but greater than or equal to 2.6 minutes
• C) less than 2.6 minutes but greater than or equal to 2.2 minutes
• D) less than 2.2 minutes

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Definitions:

Annual Net Operating Cash Inflows

The total cash that flows into a business from its operational activities over a year, minus cash outflows.

Incremental Cost Approach

A method of analyzing the financial information by only considering the expenses and revenues that will change as a result of a decision.

Total Cost Approach

A method in logistics and supply chain management focusing on minimizing the total costs associated with the distribution and storage of products, rather than focusing on individual elements.

Discount Rate

This rate is employed in the process of discounted cash flow analysis to ascertain the present worth of forthcoming cash flows.