Perform a Capacity Analysis of the Process Given Below and Answer

question 8

Multiple Choice

Perform a capacity analysis of the process given below and answer questions #16, #17, and #18 to help fix the process. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 27 units per hour and each unit must be worked on by all five stages. Administrative clerks do Stages A and B. The assistant manager does Stages D and E. The coding specialist does Stage C.
SHAPE \* MERGEFORMAT

-The total process (throughput) capacity in units per hour for the five stage process, A to D, assuming 3 administrative clerks, 2 coding specialist, and 4 assistant managers on duty is:

• A) less than 10 units per hour.
• B) more than 10 units but less than or equal to 20 units.
• C) more than 20 units but less than or equal to 30 units.
• D) more than 30 units but less than or equal to 40 units.

---

Definitions:

Control Activities

Procedures and policies that are implemented by an entity to ensure that its directives are carried out, including safeguarding assets and preventing and detecting errors and fraud.

Errors And Fraud

Incorrect entries or intentional misstatements in financial statements, often leading to incorrect financial reporting.

Control Activity

Actions, policies, and procedures that are implemented to address risks and help ensure that management's directives are carried out.

Ordering Merchandise

The process of buying goods for sale, usually for a retail environment.