A Work System Has Five Stations That Have Process Times

question 44

Multiple Choice

A work system has five stations that have process times of 5, 9, 4, 6, and 8. What is the throughput time of the system?

• A) 32
• B) 9
• C) 18
• D) 35
• E) 7

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Definitions:

Income Statement

An accounting statement that provides a summary of a company's revenues, expenses, and net income over a specific period.

Expenses

The monetary costs incurred in the process of generating revenues, including fixed, variable, and semi-variable expenses.

Contribution Margin Ratio

A financial metric expressing the percentage of each sales dollar remaining after variable costs are subtracted.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.