Which of the Following Statements Is FALSE Regarding Control Charts

question 51

Multiple Choice

Which of the following statements is FALSE regarding control charts?

• A)X-bar charts measure central tendency in a process.
• B)R-charts measure the variability of a process.
• C)It is not possible to have a LCL below 0 in a c-chart.
• D)It is not possible to have a UCL value above 1 in a p-chart.
• E)The nominal line is always the midpoint between the UCL and LCL.

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Definitions:

Net Operating Income

The revenue from a business's operations after subtracting operating expenses, excluding taxes, and interest.

Common Fixed Expense

Costs that do not vary with production volume, and are shared among different products or business segments.

Contribution Margin Ratio

The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.