Suppose That the Allowance Factor for a Job Is

question 38

Multiple Choice

Suppose that the allowance factor for a job is .5 and the normal time is 5 hours. What is the standard time?

• A) 5 hours
• B) 2.5 hours
• C) 10 hours
• D) 7.5 hours
• E) cannot determine with the given information

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Definitions:

Market Price

The market price at which you can currently buy or sell a service or asset in a specified market.

Negative Economic Profit

A situation where a firm's total revenue is less than its total costs, including opportunity costs.

Market Price

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including opportunity costs.