ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
Question
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A firm currently operates at a capacity utilization rate of 65%. If it produces 9, 100 units in a week, what is the firm’s weekly capacity?
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9, 100 units
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15, 015 units
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5, 915 units
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14, 000 units
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Explanation:
Detailed explanation-1: -The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.
Detailed explanation-2: -Solution(By Examveda Team) Product which requires low amount of resources, but incur high per unit cost is classified as product over costing.
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