Simkin Corporation Keeps Careful Track of the Time Required to Fill

question 131

Multiple Choice

Simkin Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below:
The manufacturing cycle efficiency (MCE) was closest to:

• A) 0.46
• B) 0.06
• C) 0.20
• D) 0.19

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Definitions:

Current Liabilities

Obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Days' Sales In Inventory

Days' Sales in Inventory is a financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.

Sales On Account

Transactions where goods or services are sold and payment is to be made at a later date, often recorded as accounts receivable.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.