Sample Observations of a Claims Processor Made Over a 160-Hour

question 31

Multiple Choice

Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms. The performance rating was 80%. The worker was idle 10% of the time (so that idle time should be subtracted from the total time when computing the average observed time) . The allowance factor is 8%. What is the normal time per unit?

• A) 0.30 minutes
• B) 16.0 minutes
• C) 17.4 minutes
• D) 18.0 minutes
• E) 22.5 minutes

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Definitions:

Exploitation

The act of unfairly using someone or something for one’s own advantage or profit, often in an unethical or unjust manner.

Small Investors

Individuals who invest modest amounts of money in financial markets or ventures, lacking the significant resources of institutional investors.

Blue-sky Laws

State regulations designed to protect investors from securities fraud by requiring sellers of new issues to register their offerings and provide financial details.

State Securities Laws

Regulations established by individual states governing the sale and distribution of securities to protect investors against fraud.