Evidence Since 1915 Indicates That Velocity Has

question 57

Multiple Choice

Evidence since 1915 indicates that velocity has

• A)grown at a fairly constant rate,even in the short run.
• B)fluctuated too much in the short run to be viewed as a constant.
• C)trended downward since 1950 due to technological and financial innovations.
• D)remained fairly constant in the short run,but tends to slowly increase.

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Definitions:

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to the total cycle time.

Non-value-added Time

Time that does not contribute directly to the final value or quality of the product or service, often seen as a target for reduction in process improvement efforts.

Throughput Time

The elapsed time from when production is started until finished goods are shipped.

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.