If the Schedule Calls for the Production of 120 Units

question 10

True/False

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day,the cycle time would be 4 minutes.

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Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and receivables).

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Current Ratio

A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.