The Amount of Time from When an Order Is Ready

question 41

Multiple Choice

The amount of time from when an order is ready to start on the production line to when it becomes a finished good is referred to as ________.

• A) manufacturing time
• B) time driver
• C) customer-response time
• D) delivery time

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Definitions:

Factory Burden

Another term for manufacturing overhead, encompassing all indirect costs involved in operating a factory, excluding direct materials and labor costs.

Surplus

The amount by which a company's income exceeds its spending, or in a broader sense, an excess of assets over liabilities.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Direct Labor Cost

The total cost of all the labor directly involved in the production of goods or services, excluding indirect expenses such as supervisor salaries and utilities.