In a Stopwatch Time Study, Adjusting the Normal Time by an Allowance

question 127

Multiple Choice

In a stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the:

• A) observed time.
• B) normal time.
• C) standard timE.
• D) allowance time.
• E) performance rating time.

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Definitions:

Effective Interest Method

A method of amortizing the discount or premium on bonds payable that results in a constant rate of interest over the life of the bond.

Semiannual

Occurring twice a year; a term often used in the context of payments, reporting periods, or interest calculations.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, unrelated to market value.

Effective Interest Amortization

A method of allocating loan interest payments over the life of the loan, taking into account the varying principal amounts.