An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of processing at any one time in the firm is 64. What is the average processing time per income tax form?
a. More than 3 but less than or equal to 4 days
b. More than 5 days
c. More than 4 but less than or equal to 5 days
d. More than 2 but less than or equal to 3 days

Question

20-11-2019
Business

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An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of processing at any one time in the firm is 64. What is the average processing time per income tax form?
a. More than 3 but less than or equal to 4 days
b. More than 5 days
c. More than 4 but less than or equal to 5 days
d. More than 2 but less than or equal to 3 days

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letmeanswer letmeanswer · Answer 1 · 2019-11-28T21:07:50+01:00

More than 3 but less than or equal to 4 days is the average processing time per income tax form.

Option - a

Explanation:

[tex]\text{ WIP (Work in process) }= R \times T = 64 = 20(T)[/tex]

[tex]T = \frac{64}{20}[/tex]

So, T = 3.2Days

The average processing time per income tax form is more than 3 but less than or equal to 4 days.

Work in process relates to a partially completed portion of the stock of a business. The valuation of a partially finished stock is also sometimes referred to as the balance sheet products in operation, particularly when the company produces tangible goods instead of services.