Using a Level Production Plan How Many Oil Changes Must

question 27

Multiple Choice

Using a level production plan how many oil changes must each employee be capable of to meet a weekly demand of 1400 oil changes in a five day work week if there are 4 employees?

• A) 40
• B) 50
• C) 60
• D) 70
• E) 80

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term contracts in proportion to the work completed.

Contract Costs

Expenses directly related to securing and fulfilling a contract, including raw materials, labor, and overhead.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the degree of completion.

Long-Term Contracts

Agreements that extend over a long period, often used in industries like construction or supply services, specifying performance obligations and payment terms.