If OT = the Mean Observed Time, PRF = the Performance

question 94

True/False

If OT = the mean observed time, PRF = the performance rating factor, F = the frequency of occurrence, and PFD = the percentage allowance adjustment based on job time, the formula to compute the standard time is (OT)(PRF)(F)(1 + PFD).

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Definitions:

External Market Price

The price at which a product or service is sold in the open market to external customers, outside of the company or organization.

Producing Division

The producing division refers to a department or segment within a company responsible for the production of goods or services.

Decentralised Organisation

A type of organizational structure where decision-making is distributed among various levels and departments rather than being concentrated at the top.

Centralised Organisation

An organizational structure where decision-making and authority are concentrated at the top levels of management.