Question: Using the accompanying log - log graph, answer the following questions: a ) What are the implications for management if it has forecast its cost
Using the accompanying loglog graph, answer the following questions:
a What are the implications for management if it has forecast its cost on the optimum line?
A Management had some difficulties controlling the production time of the first units produced whereas there are no considerable difficulties with the latest units produced.
B Management does not have any considerable difficulties since the optimum line is a straight line.
C Management seems to have considerable difficulty controlling costs.
D Management seems to gain additional profit as long as actual results are higher than the forecast.
b What could be causing the fluctuations above the optimum line?
A fluctuations in the quality of raw materials
B inconsistent maintenance of machinery
C turnover in the workforce
D All of the above.
c If management forecasted the
fifteenthfifteenth
unit on the optimum line, what was that forecast in hours?
The optimum time for the
fifteenthfifteenth
unit is approximately
hours.
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