Management Accounting - Study Mode

[#156] Factors identified by cause and effect diagrams include
Correct Answer

(D) all of above

Explanation

Solution: Factors identified by cause and effect diagrams include component and material factors, machine-related factors and human factors.

[#157] Delivery of goods by time it is contracted to be delivered is known as
Correct Answer

(D) on-time performance

Explanation

Solution: Delivery of goods by time it is contracted to be delivered is known as on-time performance. On time performance, sometimes referred to as on time running, is normally expressed as a percentage, with a higher percentage meaning more vehicles are on time.

[#158] Value added manufacturing time is divided by total manufacturing is to calculate
Correct Answer

(D) manufacturing cycle efficiency

Explanation

Solution: Value added manufacturing time is divided by total manufacturing is to calculate manufacturing cycle efficiency. Manufacturing cycle efficiency measures the proportion of production time spent on value-added activities.

[#159] Chart which represents how regularly defect occurs in production process is classified as
Correct Answer

(D) Pareto chart

Explanation

Solution: Chart which represents how regularly defect occurs in production process is classified as Pareto chart. A Pareto chart is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.

[#160] If manufacturing cycle efficiency is 0.725 and total manufacturing time is 45 minute, then value added manufacturing time will be
Correct Answer

(C) 32.625

Explanation

Solution: Value added manufacturing time = Manufacturing cycle efficiency × Total manufacturing time = 0.725 × 45 = 32.625.