Average Cycle Time Is Estimated By:
A) Production Time $\div$ Value of Goods Produced

question 75

Multiple Choice

Average cycle time is estimated by:

• A) production time \(\div\) value of goods produced.
• B) total processing time \(\div\) total number of units produced.
• C) total processing time \(\div\) number of good units produced.
• D) number of good units produced \(\div\) total processing time.

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Definitions:

Statistical Control Chart

A tool used in statistical quality control to monitor, control, and improve the process quality by plotting data points over time and determining whether they fall within a specified control limit.

Labour Efficiency Variance

The deviation in actual labor usage compared to what was expected or budgeted, impacting the cost-efficiency and profitability of production.

Critical Values

Specific points on the scale of a test statistic that determine the threshold for rejecting the null hypothesis.

Material Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard pricing.