Big Bus Company Produces Buses

question 65

Multiple Choice

Big Bus Company produces buses.In order to produce the seats for the buses, special equipment must be set up.The setup cost per frame is $40.The cost of carrying seats in inventory is $5 per seat per year.The company produces 100,000 buses per year. Total carrying costs (rounded to the nearest dollar) associated with the economic order quantity are

• A) $3,613.
• B) $3,163.
• C) $506.
• D) $316.

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Definitions:

Job Analysis

The process of studying and collecting information related to the operations and responsibilities of a specific job.

Conducting

The act of directing or leading an orchestra, choir, or other musical ensemble, using gestures and movements to shape the music's performance.

Approaches

Various methods or strategies used in a particular field or discipline to address issues or solve problems.

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is considered the father of scientific management, proposing that by optimizing and simplifying jobs, productivity would increase.