Production and Industrial Engineering Question set 7

Production and Industrial Engineering Question set 7
Question:-
Option (A)
Total inventory costs
Option (B)
Item value
Option (C)
Annual usage value
Option (D)
Item demand
Correct Option:
C
Question:-
Option (A)
300
Option (B)
460
Option (C)
500
Option (D)
10000
Correct Option:
C
Question Solution:
Cf + Cvx = Cpx
\ x = (f/(Cp-Cv))= (5000/(30-20))= (5000/10) = 500
Where
Cf = fixed cost
Cv = (variable cost/ Product)
Cp = (Sales cost /Product)
Question:-
Option (A)
Dispatch of sales order
Option (B)
Dispatch of factory mail
Option (C)
Dispatch of finished product to the user
Option (D)
Dispatch of work orders though shop floor
Correct Option:
D
Question Solution:
Dispatching basically is the physical delivery of orders and instructions to all the persons who are involved in actual production and other supporting activities
Question:-
Option (A)
Standard time of a job
Option (B)
Merit rating of the worker
Option (C)
Fixation of incentive rate
Option (D)
Normal time of job
Correct Option:
D
Question Solution:
A rating factor is a factor by which the observed time is multiplied in order to adjust for differences in operators performance. Normal time = observed time x performance rating factor
Question:-
Option (A)
Factory overheads
Option (B)
Factory and administration and sales overheads
Option (C)
Factory, administration and sales overheads
Option (D)
Factory, administration and sales overheads and profit
Correct Option:
A
Question Solution:
Prime cost = Direct material cost + Direct labour cost + direct expanses
Production cost = prime cost + factory overhead