The Trundle Pass Mining Co $$\begin{array} { | l | r | } \hline \text { Labor hours } & 112,000 \\\hline \text { Tons of output produced } & 1,575,000 \\\hline\end{array}$$

question 18

Multiple Choice

The Trundle Pass Mining Co.has the following information for last year:
$$\begin{array} { | l | r | } \hline \text { Labor hours } & 112,000 \\\hline \text { Tons of output produced } & 1,575,000 \\\hline\end{array}$$ The partial productivity for labor is:

• A) 1.120.
• B) 0.071.
• C) 14.06.
• D) 112.00.

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Definitions:

Raw Materials Inventory

Items and components that are stored and eventually used in the production process to create finished goods.

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Shortage Costs

Costs incurred when demand exceeds supply, including opportunity costs of unsatisfied demand and potential loss of future business.

Safety Stock

Extra inventory kept on hand by a company to prevent stockouts caused by delays in the supply chain or sudden increases in demand.