An Order Is Received by a Company and Then Spends

question 143

Multiple Choice

An order is received by a company and then spends 1 day in assembly and 3 days in finishing before being stored in the warehouse. On average, the units are stored for 3 days before being shipped to a customer. Which of the following measures would be true?

• A) work-in-process time of 7 days
• B) manufacturing cycle time of 4 days
• C) pass-through time of 6 days
• D) manufacturing cycle time of 7 days

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Definitions:

Costs

The amount of money required to produce, maintain, or acquire a product or service, including direct, indirect, fixed, and variable components.

Risk and Return

The principle that potential return on an investment is correlated with the level of risk involved in making that investment.

Financial Decisions

Choices made by individuals or businesses regarding the management of finances, including investments, budgeting, and financial planning.

Trade-off

The act of giving up one benefit in order to gain another, often considered in decision-making processes.