According to Little's Law,which of the Following Can Be Used

question 18

Multiple Choice

According to Little's law,which of the following can be used to estimate work-in-process inventory?

• A)Process time/Cycle time
• B)Throughput rate times throughput time
• C)Process velocity/Throughput time
• D)Set up time/Throughput rate
• E)Value added time/Process velocity

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Definitions:

Fixed Costs

Costs that remain constant in total regardless of changes in the activity level within a relevant range.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as lease payments, insurance, and salaries of permanent staff.

Variable Costs

Costs that change in proportion to the level of production or sales volume.

Operating Income

Earnings before interest and taxes, representing a company's profit from its core business operations.