At the Beginning of the Current Year,Peters Company Installed a JIT

question 34

Multiple Choice

At the beginning of the current year,Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products: $$\begin{array} { l r } \text { Theoretical anual capacity } & 2,000 \\\text { Actual production } & 1,800 \\\text { Production hours avalable } & 500 \\\text { Actual conversion cost per hour } & \$ 7\end{array}$$
- What is the theoretical velocity per hour?

• A)1.0 units
• B)1.1 units
• C)3.6 units
• D)4.0 units

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Definitions:

Upward Sloping Yield Curve

A graph showing higher interest rates for longer-term debt compared to shorter-term debt, indicating investor anticipations of rising interest rates in the future.

Normal Curve

The normal curve, or normal distribution, is a bell-shaped curve that shows the probability distribution of a continuous random variable, where most occurrences take place near the mean.

Marginal Investor

An investor whose actions might influence the market price of a security and who is typically sensitive to changes in risk levels or return.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, also known as the required rate of return.