Which of the Following Statements Is TRUE

question 210

Multiple Choice

Which of the following statements is TRUE?

• A) If a process is in statistical control, assignable causes of variation should be sought.
• B) If a process is in statistical control, there are no causes of variation.
• C) If a process is out of statistical control, there are only assignable causes of variation.
• D) When assignable causes of variation exist, the process generates different distributions of the quality characteristic over time.

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Definitions:

Inventory Costing Methods

These are accounting approaches to determine the value of inventory on hand and the cost of goods sold, including methods like FIFO (First-In, First-Out) and LIFO (Last-In, First-Out).

Weighted-average

A calculation that takes into account both the quantity and the significance of the items being averaged.

FIFO

A cost flow assumption for inventory and financial accounting where the first goods purchased or produced are the first to be sold.

FIFO Inventory

An inventory costing method that assumes the items purchased or produced first are sold first, thereby remaining inventory consists of items added most recently.