Which of the Following Is an Example of Special Cause

question 112

Multiple Choice

Which of the following is an example of special cause variation?

• A)Yesterday the framing crew was a little tired and didn't get as much done as they thought.
• B)The avian flu ravaged the laying stock for Chickenverks and the Great Egg Shortage of '06 threatened to cancel Easter egg hunts worldwide.
• C)The product unveiling was a week late because there was some difficulty getting the ivory through customs.
• D)The debugging step averages two months but this project was finished a day early.

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Definitions:

Specific Identification

An inventory costing method where the actual cost of specific units of inventory is assigned to those units, useful for items that are uniquely identifiable and have significantly different costs.

Low-Cost Units

Units of production that are manufactured or acquired at relatively low costs, often to manage expenses and improve profitability.

Inventory Valuation

Inventory valuation is a process of determining the monetary value of a company's inventory at the end of a reporting period, based on the cost or market value.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.