What Is the Term for the Number of Units That

question 3

Multiple Choice

What is the term for the number of units that can be produced in a given period of time?

• A)velocity
• B)cycle time
• C)turnover
• D)efficiency

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree to which fixed costs are utilized.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Income From Operations

Earnings derived from a company's regular business activities, excluding revenues and expenses from non-operating activities.