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.
- Management intends to operate the spray booth for two eight-hour shifts, five days per week. The output sacrificed based on the planned utilization of this spray booth is termed:

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