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11
Two alternatives can produce a product. First have a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs. 30. The break even quantity between the two alternatives is
Discuss
Answer & Solution
Answer: Option B
Solution:
Equation we use:
Fixed cost/sales cost - variable cost = Q (BEP).

2000+ 20*X = 1500+ 30*X.
500 = 10*X.
Here the break-even quantity is:
x= 50 units.
12
Time study is carried out to determine the time required to complete job by
Discuss
Answer & Solution
Answer: Option C
Solution:
Time study is carried out to determine the time required to complete job by An average worker
13
The linear programming techniques can be applied successfully to industries like
Discuss
Answer & Solution
Answer: Option D
Solution:
The linear programming techniques can be applied successfully to industries like
- Iron and steel
- Food processing
- Oil and chemical
14
Which of the following layouts is suited to job production?
Discuss
Answer & Solution
Answer: Option A
Solution:
Process layout is suited to job production
15
Micro motion study is
Discuss
Answer & Solution
Answer: Option A
Solution:
Thus micro motion study is the technique of recording and analyzing the timing of basic elements of an operation with the objective of achieving the best method of performing the operation.
16
Production cost refers to prime cost plus
Discuss
Answer & Solution
Answer: Option A
Solution:
Production cost refers to prime cost plus Factory overheads
17
In jobbing production
Discuss
Answer & Solution
Answer: Option D
Solution:
In jobbing production
- Highly skilled workers are needed
- Unit costs are high
- Operations are labour-intensive
18
According to Muther, the basic principle of best layout is
Discuss
Answer & Solution
Answer: Option D
Solution:
According to Muther, the basic principle of best layout is
- Principle of overall integration
- Principle of flow
- Principle of flexibility
19
The start or completion of task is called
Discuss
Answer & Solution
Answer: Option A
Solution:
The start or completion of task is called An event
20
The process capability of a machine is defined as the capability of the machine to
Discuss
Answer & Solution
Answer: Option A
Solution:
The process capability of a machine is defined as the capability of the machine to Produces a definite volume of work per minute