Wait Time Is the Time

question 21

Multiple Choice

Wait time is the time:

• A) Spent producing the product.
• B) Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment.
• C) Spent moving raw materials from storage to production and goods in process from one factory location to another factory location
• D) That an order or job sits with no production applied to it.
• E) That is considered value-added time.

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Definitions:

Direct Labor Costs

The total cost of all the labor that is directly involved in the production of goods or the performance of services.

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.

Office Rent

The cost associated with leasing a space for business operations or administrative work.

Financial Break-even Point

The Financial Break-even Point is the level of revenue at which a company's total costs and total revenues are exactly equal, indicating no net profit or loss.