Which of the Following Statements Is Correct Concerning the Elements

question 206

Multiple Choice

Which of the following statements is correct concerning the elements of cycle time?

• A) Process time is considered non-value-added time.
• B) Wait time is considered value-added time.
• C) Inspection time is the time spent producing the product.
• D) Cycle efficiency is the ratio of non-value-added time to total cycle time.
• E) Move time is the time spent moving (1) raw materials from storage to production and (2) goods in process from one factory location to another factory location.

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Definitions:

National Saving

The total amount of savings in a country, which is comprised of both private savings by households and the savings of the government, representing the difference between a nation’s income and consumption.

Open Economy

An economy that allows for trading and financial transactions with other countries.

Investment

Refers to the purchase of goods that are not consumed today but are used in the future to create wealth, such as purchasing machinery for a factory.

Net Capital Outflow

The difference between domestic residents’ investments abroad and foreigners’ investments in the domestic economy.