Which of the Following Statements Is Correct Concerning the Elements

question 66

Multiple Choice

Which of the following statements is correct concerning the elements of cycle time?

• A)Move time is the time spent moving (1)raw materials from storage to production and (2)goods in process from one factory location to another factory location.
• B)Inspection time is the time spent producing the product.
• C)Process time is considered non-value-added time.
• D)Wait time is considered value-added time.
• E)Cycle efficiency is the ratio of non-value-added time to total cycle time.

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Definitions:

Equipment

Assets used in the operations of a business that have a longer-term use, such as machinery, office furniture, and computers, which are subject to depreciation over their useful lives.

Free Cash Flow

Cash generated by a company after accounting for operating expenses and capital expenditures, available for investment or distribution.

Direct Method

An accounting method used to prepare the cash flow statement, which shows actual cash inflows and outflows from operating activities.

Operating Expenses

Expenditures that a business incurs through its normal business operations, such as rent, utilities, and salaries, excluding production costs.