Which of the Following Statements on Acceptance Sampling Is True

question 115

Multiple Choice

Which of the following statements on acceptance sampling is true?

• A) Acceptance sampling draws samples from a population of items, tests the sample, and accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough.
• B) The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size.
• C) The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots.
• D) All of the above are true.
• E) All of the above are false.

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Definitions:

Factory Overhead

Costs incurred in the production process that cannot be directly linked to specific products, such as maintenance, utilities, and salaried personnel.

Product Cost

An aggregate measure of the total costs involved in creating a product, including direct, indirect, and overhead costs.

Vice President

An executive or senior officer in a business or organization, typically reporting to the president or CEO, with specific responsibilities that vary by the entity.

Finance

The management of large sums of money, especially by governments or large companies, encompassing activities such as lending, investing, and budgeting.