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Using the cumulative average-time method ? Find The Following

<p style="text-align:left;"><strong>2. Using the cumulative average-time method and a90% learning rate, what</strong></p> <p style="text-align:left;"><strong>would be the total time required to produce4 units of a product if the first </strong><strong>unit was produced in5 hours?</strong></p> <p style="text-align:left;"><strong> a.20 total hours</strong></p> <p style="text-align:left;"><strong> b.18 total hours</strong></p> <p style="text-align:left;"><strong> c.17.6 total hours</strong></p> <p style="text-align:left;"><strong> d.16.2 total hours</strong></p>

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Question added by Mohamed Ezat Mahmoud Mady , Accounting and Financial Manager , Trustmed
Date Posted: 2014/12/29
Mohamed Ezat Mahmoud  Mady
by Mohamed Ezat Mahmoud Mady , Accounting and Financial Manager , Trustmed

The Cumulative Average Time Method Is A Statistical Method For Forecasting and the Way to Solve This Case :-

1- the time to produce the first unit is5 Hour 

2- When The Production Is  doubled the Learning Is Increase And the Time Of Production Is Reduce so the produce Of2 Unit =5 hour×90% =4.5 hour

3-  produce4 unit =4.5 hour×90% =4.05 

so the total tine to produce4 Unit =4.05×4=16.2 is the right Answer 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (d)   >>>>>>>>  16.2 total hours

 

Muhammad Javed
by Muhammad Javed , Manager Finance , EuroMoto

Answer : d --------16.2 total hours 

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer is d 

accumulate time per unit  after forth unit is =5*.9*.9=4.05

total time for all units are =4.05*4 =16.2

 

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The answer is the correct answer is D

Jijumon James
by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL

answer is d, It is an application of learning curve theory. When production doubles cumulative average time per unit will decreased at a fixed percentage. In the given case it is90%.

So for1unit       -  5Hours

           2 Units     -    4.5hours

           4 Units      -  4.05 hours 

  So Total  =4 *4.05  = 16.2 hours

Khurrum Iqbal
by Khurrum Iqbal , Accountant , Akun Logistic Services

d.

Aftab Ahmed Aftab Ahmed
by Aftab Ahmed Aftab Ahmed , MANAGER OPERATIONS , SUMMIT BANK LTD

a

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

D is the correct answer,,,,,,,

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

d.>>>>>16.2 total hours

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