You Have Just Determined the Actual Number of Workstations That

question 20

Multiple Choice

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure.The cycle time of the line is 5 minutes, and the sum of all that tasks required on the line is 25 minutes.Which of the following is the correct value for the resulting line's efficiency?

• A)0.500
• B)0.833
• C)0.973
• D)0.990
• E)None of these

Calculate the cost of goods sold in a sales-type lease considering residual values.

Recognize sales revenue in a sales-type lease including the impact of bargain purchase options.

Understand the calculation of the lessor's gross receivable in lease transactions.

Distinguish the characteristics of operating and capital leases from the perspectives of both lessors and lessees.

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Definitions:

Normal Absorption Costing

A method of product costing that assigns all manufacturing costs to products, including both variable and fixed overhead, based on a normal level of operation.

Budgeted Rate

A predetermined rate used in budgeting to estimate costs or revenues for a specific activity or product.

Work in Process

Inventory that includes materials that have been partially processed but are not yet finished goods.

Overhead Costs

Indirect expenses related to the day-to-day running of a business, not directly tied to specific product or service production.