Which of the Following Statements Is Correct Concerning the Elements

question 60

Multiple Choice

Which of the following statements is correct concerning the elements of cycle time?

• A) Move time is the time spent moving (1) raw materials from storage to production and (2) goods in process from factory location to another factory location.
• B) Inspection time is the time spent producing the product.
• C) Process time is considered non-value-added time.
• D) Wait time is considered value-added time.
• E) Cycle efficiency is the ratio of non-value-added time to total cycle time.

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Definitions:

Operating Ratios

Financial metrics that measure the efficiency and profitability of a company by comparing various expenses or costs to its total revenue.

Market Share

The fraction of total market sales volume attributed to a single brand, product, or company.

Markdown

A reduction in the selling price of goods, often to clear inventory or stimulate sales.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, illustrating its profitability.