My understanding (please correct me if I'm wrong) of the log time numbers are:
1.) Latency time - the amount of actual real world time taken to process the request. The App Engine infrastructure uses this time to determine if you are (since it's Christmas time) being naughty or nice. Different numbers have been thrown out as to what it means to be nice but definitely average latency time needs to be under 1 second but it's been noted that sub 800ms is preferred and even lower is better. What happens if you're naughty. Well, then supposedly Santa won't spin up additional instances for you. It has been noted on this forum by Santa's Elves (the Googlers) that this average latency time requirement to spin up new instances doesn't include the latency time for background tasks.
2.) CPU Time - the amount of CPU time that your code has used based on a 1.2 GHz 64-bit x86 CPU executing sequentially which equates to 1200 megacycles equal to one second physical time. My assumption is then that if your code executed on a 2.4 GHz machine that real world time could be 1 second and CPU time could be 2 seconds (assuming no API time).
3.) API Time - the amount of API time. Time spent executing in API calls. This number could be very large even even if Latency Time is small. For example, performing a batch get of 200 keys. These could be executed in parallel by the API and could result in large API time but small latency time.
Now, according to the QuoteService docs, the CPU Time and API Time are completely separate numbers and would need to be added together to get your Total Billed CPU time. Now, do the logs follow this convention. I'm not totally sure since I can't find the logs documented anywhere and I can't find an example in my logs of API time ever being greater than CPU time. I would assume that at times if I did a batch get like I mentioned above and very little else in my code that the API time would greatly exceed my CPU time, but I can't find that. It would be great if anyone can add to this and if they have an example log entry showing this that would be awesome. Any of Santa's elves wish to chime in? Also, if this is documented someplace nicely and I just couldn't find it then a link to it would be nice.
Stephen