Customer Order Cycle Time Is the Agreed-Upon Time Between the Purchase

question 57

True/False

Customer order cycle time is the agreed-upon time between the purchase of a product and the delivery of the product.

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, used as a basis for assigning labor costs to products.

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.

Machining Department

A specialized division within a manufacturing operation that performs machining processes, such as cutting, shaping, or drilling materials.

Finishing Department

The last department in a manufacturing process where products are completed and made ready for sale.