As Part of Its Quality-Improvement Program a Company Is Conducting

question 5

Multiple Choice

As part of its quality-improvement program a company is conducting a time study for a particular job. The time study encompassed 10 job cycles, and the results include the following cumulative times and performance rating factors for each element. An allowance factor of 16% is assumed. The normal cycle time for this job would be

• A) 1.809 minutes.
• B) 2.098 minutes.
• C) 1.530 minutes.
• D) 2.233 minutes.

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Definitions:

Committed Fixed Costs

Long-term fixed costs that a business incurs from its commitments, such as leases or contracts, which are difficult to change in the short term.

Depreciation

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear over time.

Highly Trained Engineers

Professionals with advanced education and training in engineering disciplines, contributing expertise to projects and innovations.

Traditional Format

A standard format used in accounting or reporting that follows longstanding, established guidelines.