An Assembly Line Consists of Three Workstations (WS)with Each Station's

question 17

Multiple Choice

An assembly line consists of three workstations (WS) with each station's activity time as shown. When fully operational the maximum output for this line in 8 hours of production time would be

• A)40 units
• B)96 units
• C)120 units
• D)160 units

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own operations, without direct payment but with foregone opportunities.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, and materials, among others, involved in the production of goods or services.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choice.