GV Is a small accounting firm supporting wealthy Individuals In thelr preparatio
ID: 426623 • Letter: G
Question
GV Is a small accounting firm supporting wealthy Individuals In thelr preparation of annual Income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing tax statements. Based on 50 years of experence, GV categorizes its cases into the following two groups Group 1 (new customers): 20 percent of cases Group 2 (repeat customers): 80 percent of cases This year, there are 35 Income tax statements arriving each week. In order to prepare the Income tax statement, GV has three resources, or employees. The following activities are carried out by employees: .An administrative support person processes every tax statement. .A senlor accountant (the owner of GV) processes only tax statements for new customers. A Junlor accountant processes tax statements for repeat customers. The administrative support person can process 40 statements per week. The senlor accountant can process 10 statements per week. The Junlor accountant can process 30 statements per week, these statements can be completed more quickly glven past Information on file about the clients. What is the Implled utilization for the junlor accountant? o 33.3% o 66.7% o 83.3% o 93.3%Explanation / Answer
ANSWER: 93.3 %
Total number of tax statements arriving each week = 35
New customers = 35*20% = 7
Repeat customers = 35*80% = 28
Junion accountant processes tax statements for repeat customers.
Utilization of junior account = repeat customers flow rate / junion account service rate = 28 / 30 = 93.3 %
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