A Methods and Measurements Analyst Needs to Develop a Time

question 20

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: $$\begin{array} { | l | c | c | c | c | c | } \hline \text { Observation } & 1 & 2 & 3 & 4 & 5 \\\hline \text { Time(Seconds) } & 84 & 76 & 80 & 84 & 76 \\\hline\end{array}$$
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

Differentiate between the concepts of opportunity cost, cost of production, and producer surplus.

Understand the concept of equilibrium price within market structures.

Analyze the impact of different pricing strategies on total surplus.

Evaluate the effects of shifts in supply and demand on producer and consumer surplus.

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Definitions:

Variable Cost Ratio

The proportion of variable costs to sales or production output, indicating how variable costs change with changes in output.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and salaries, but excluding costs related to production.

ROE

Return on Equity (ROE) is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

EPS

Earnings Per Share, a company's profit divided by the number of outstanding shares of its common stock.