An Example of a Suitable Key Performance Indicator (KPI)for the Objective

question 39

Multiple Choice

An example of a suitable key performance indicator (KPI) for the objective of ensuring that production runs are efficiently conducted is:

• A)Inventory costs per product
• B)Production cycle times
• C)Level of inspection and testing costs incurred
• D)Number of quality complaints

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Definitions:

Maker

The entity that issues or creates a promissory note and agrees to pay the note's amount to a specified party.

Allowance for Doubtful Accounts

A contra-asset account on a company's balance sheet that represents the amount of receivables the company expects may not be collected due to customer defaults.

Contra Asset

An account listed in a company's balance sheet that is used to reduce the balance of a related asset account, showing the amount that effectively reduces the original asset's value.

Maturity

The time at which a financial obligation must be repaid or settled in full.