Consider a Production Line with Five Stations

question 41

Multiple Choice

Consider a production line with five stations. Stations one through five can process a unit in 10, 15, 20, 5, and 12 minutes, respectively. What is the maximum throughput per hour?

• A) 6 units
• B) 4 units
• C) 3 units
• D) 12 units
• E) 5 units

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Definitions:

Building Depreciation

The systematic allocation of the cost of a building over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Responsibility Centres

Parts of an organization tasked with specific duties and responsibilities, wherein performance is measured based on predetermined objectives.

Square Metres

A unit of area measurement equivalent to a square that is one meter on each side.

Cost Pool

A grouping of individual costs, typically by department or service, from which cost allocations are made.