A Process Capability Ratio Reflects the Number of (Z) Sigmas

question 54

True/False

A process capability ratio reflects the number of (Z) sigmas included in the range between the upper and lower control limits.

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Definitions:

Accounting Information

Data related to the financial transactions and status of an organization, used for analysis, reporting, and decision making.

Relevance

The importance of information in decision-making; it must be timely and have predictive and confirmatory value.

Going Concern Assumption

The accounting principle that a company will continue to operate indefinitely, without the intention or necessity of liquidation.

Foreseeable Future

A concept in accounting referring to the period during which a business is expected to continue its operations without significant change.