Given the Following Information, What Would Efficiency Be

question 16

Multiple Choice

Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

• A)40 percent
• B)50 percent
• C)60 percent
• D)80 percent
• E)90 percent

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Definitions:

Unrealized Inventory Profits

Profits that have been recorded on paper due to an increase in inventory value but have not been realized through sales.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having control over those policies.

Preferred Share Issue

The process of offering preferred shares to investors, which are stock shares that have priority over common shares in dividend payments and asset liquidation, but usually do not have voting rights.

Consolidated Balance Sheet

A financial statement that shows the aggregate financial position of a parent company and its subsidiaries as if they were a single entity.