In a Factory,machine a Has a Ten Minute Set-Up Time

question 16

Multiple Choice

In a factory,machine A has a ten minute set-up time per batch and a two minute per unit run time.Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit.The factory makes products in batches ranging from one unit to one hundred units.Assuming capacity is not a limitation on either machine,on which batches should machine B be used?

• A)All batches should be run on machine B
• B)Batches of more than 20 units should be run on machine B
• C)Batches of fewer than 80 units should be run on machine B
• D)Batches with up to 50 units should be run on machine B
• E)No batches should be run on machine B

---

Definitions:

Contingency Payment

A payment that depends on the occurrence of a specific condition or set of conditions in the future.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the time value of money and risk.

Financial Balances

Financial balances refer to the comparison and calculation of financial resources, often focusing on the discrepancies between income and expenses or assets and liabilities.

Consolidated Expenses

Expenses that are combined from all subsidiaries and the parent company when preparing consolidated financial statements, providing a holistic view of the entity's operational cost.