A Manufacturer's Average Work-In-Process Inventory for Part 1234 Is 1,250

question 83

Multiple Choice

A manufacturer's average work-in-process inventory for Part 1234 is 1,250 parts. The workstation produces parts at the rate of 150 parts per day. What is the average amount of time a part spends at the workstation?

• A) More than 4 but less than or equal to 6 days
• B) More than 6 but less than or equal to 8 days
• C) More than 8 but less than or equal to 10 days
• D) More than 10 days

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Definitions:

Cheque Delay

A situation where there is a postponement in the processing or clearance of a cheque by a bank.

Average Daily Float

This refers to the average amount of uncollected checks or electronic transfers in the process of clearing.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Collection Delay

The time lag between the date an entity issues an invoice and the date it actually receives payment.