A Methods and Measurements Analyst Needs to Develop a Time

question 99

Multiple Choice

A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results:

What is the standard time for this task if the employee worked at a 25 percent faster pace than average and an allowance of 20 percent of job time is used?

• A)80 seconds
• B)96 seconds
• C)100 seconds
• D)120 seconds
• E)125 seconds

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Definitions:

Market Value

Market value is the price at which an asset would trade in a competitive auction setting, reflecting what a buyer is willing to pay.

Variable Manufacturing Costs

Variable manufacturing costs are expenses that fluctuate with production volume, such as raw materials and direct labor costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Production Capacity

The maximum amount of goods or services that a facility can produce over a given time period under normal operating conditions.