A Methods and Measurement Analyst Wants to Develop a Time

question 96

Multiple Choice

A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of 2 seconds.
What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 25 percent of job time is used?

• A)20 seconds
• B)25 seconds
• C)26.7 seconds
• D)30 seconds
• E)32 seconds

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Definitions:

Market Price

The present rate at which an asset or service is being offered for sale or purchase in the open market.

Product Price

The monetary cost of a good or service in the marketplace.

Profit-Maximizing

The process by which a company determines the price and output level that generates the maximum profit.

Marginal Cost

The increased cost resulting from the production of one more unit of a product or service.