Fruchter Corporation Keeps Careful Track of the Time Required to Fill

question 97

Multiple Choice

Fruchter Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below: The throughput time was:

• A)4.6 hours
• B)32.8 hours
• C)11.0 hours
• D)37.4 hours

---

Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations and asset disposal decisions.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.

Basic Overheads

The routine, essential expenses incurred in the operation of a business, such as rent, utilities, and salaries.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.