Which of the Following Reduces Manufacturing Cycle Times and Delays

question 8

Multiple Choice

Which of the following reduces manufacturing cycle times and delays?

• A) increasing the capacity of a bottleneck resource
• B) selling of an existing equipment to save up on depreciation costs
• C) increasing the time it takes for setups and processing
• D) outsourcing the job to a third party

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Definitions:

Outstanding Accounts Receivable

Refers to the money owed to a company for goods or services that have been provided but not yet paid for.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible, resulting in a contra asset account to adjust the value of total accounts receivable.

Percent of Sales Method

A forecasting technique used to estimate various financial metrics, like expenses or inventory levels, as a percentage of sales revenue.

Realizable Value

An estimate of the amount for which an asset can be sold or a liability settled under current market conditions.