Cycle Time Efficiency Is

question 102

Multiple Choice

Cycle time efficiency is:

• A)Defined as the ratio of time spent on value-added activities to the sum of time spent on value-added plus non-value-added activities.
• B)Also referred to as process efficiency.
• C)Defined as the ratio of throughput to resources used.
• D)The ratio of throughput to the amount of product in backlog status.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, used for calculating labor costs and efficiency.

Plantwide Predetermined Overhead

An overhead rate calculated for an entire manufacturing plant, applied to all products regardless of the specific department in which they were produced.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the manufacturing process.

Mark Up

The percentage added to the cost price of goods to cover overhead and profit.