Automan,Inc

question 56

Multiple Choice

Automan,Inc.makes "tennis robots" on an assembly line with 9 tasks.The tasks and their times follow. The desired output rate is 50 robots an hour.The "theoretical maximum efficiency" on the line is

• A)less than 85%.
• B)more than 85% but less than or equal to 90%.
• C)more than 90% but less than or equal to 95%.
• D)more than 95%.

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Definitions:

Process Costing

A costing method used by companies that produce similar or identical units of product in batches employing a consistent process.

Home Construction

The process of building or assembling a residential dwelling, which involves planning, design, obtaining permits, and actual construction activities.

Job Order Costing

An accounting method that accumulates costs based on individual jobs, useful in manufacturing or service situations where each job is different.

Process Costing

An accounting methodology used for allocating production costs to individual units of output in continuous production processes.