ENTREPRENEURSHIP

ENTREPRENEURIAL OPERATIONS

PRODUCTION PLANNING AND CONTROL

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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?
A
9, 100 units
B
15, 015 units
C
5, 915 units
D
14, 000 units
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.

There is 1 question to complete.