A Company Has a Target Output Rate of 40 Units

question 61

Multiple Choice

A company has a target output rate of 40 units every five 5) hours when its line is fully operational.To achieve this target the firm must have a cycle time of

• A)more than 12.50 minutes
• B)more than 10.00 minutes
• C)7.5 minutes or less
• D)8 minutes or less

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Definitions:

Cost of Goods Sold

The costs directly resulting from the creation of products a company sells, including expenses related to materials and labor.

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold.

LIFO Inventory Method

An accounting technique where the most recently acquired items of inventory are recorded as sold first, often used to calculate cost of goods sold and ending inventory.

Merchandise Inventory

The goods and products a company holds for the purpose of selling to customers.