Question

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?

Answer 1

Answer:

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

Explanation:

The average processing time per income tax form is an average number of days it takes to process an income tax form.

WIP = R x T

Where: WIP = Work in progress; R = Rate; and T = Time

WIP = R X T or 64

WIP = 20T = 64

T = 64 / 20 = 3.2 days

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