If OT = the mean observed time, PRF = the performance rating factor, F = the frequency of occurrence, and PFD = the percentage allowance adjustment based on job time, what is the formula to compute the standard time?
A) (OT)(PRF)(F)
B) (OT)(PRF)(F)(1 + PFD)
C) (OT)(PRF)(F) / (1 - PFD)
D) (OT)(PRF) / (F)
E) (OT)(PRF)(F) / (1 + PFD)

Question

Quizplus · Accepted Answer

The formula to compute the standard time is (OT)(PRF)(F)(1 + PFD) where OT is the mean observed time, PRF is the performance rating factor, F is the frequency of occurrence, and PFD is the percentage allowance adjustment based on job time.

If OT = the Mean Observed Time, PRF = the Performance