Question: 1 . A process is replicated in another country where wages are 5 0 percent lower. Staffing and processing times are identical. What would be
A process is replicated in another country where wages are percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor?
a Costs of direct labor would be percent lower.
b Costs of direct labor would be the same.
c Costs of direct labor would be percent higher.
d Cannot determine from the given information.
You and three of your friends run a car wash for a fundraiser. Between interior and exterior cleaning, you spend about minutes per vehicle. You are so successful that the next day you invite four more friends to help. How does this impact the labor content?
a The labor content goes up
b The labor content stays the same.
c The labor content goes down.
d Cannot determine from the given information.
A nonbottleneck worker currently has an idle time of seconds per unit. Because of the large demand, the company improves the process by adding more capacity to the bottleneck. How does this impact the idle time of the worker?
a The idle time would decrease.
b The idle time would stay the same.
c The idle time would increase.
d Cannot determine from the given information.
A group of workers works really hard. In fact, they work so hard that one of them claims to have an average labor utilization of percent. Is that possible?
a Yes
b No
The bottleneck resource in a process has the least idle time. True or false?
a True
b False
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