Gnash Motor Cars, Inc

Multiple Choice

Gnash Motor Cars, Inc., employs a robotic spray booth to paint automobile bodies in its Flintstone plant. The robotic spray booth is capable of painting five cars per hour. Thus, its weekly theoretical capacity is 840 cars. Company engineers have set the rated speed of the spray booth at four cars per hour to allow for unavoidable downtime for maintenance and process irregularities.
-The output sacrificed based on the assumption that this spray booth can operate effectively 80% of the time is termed:

A) Budgeted waste.
B) Efficiency waste.
C) Rate-based waste.
D) Management policy waste.