Which One of the Following Statements Is TRUE

question 39

Multiple Choice

Which one of the following statements is TRUE?

• A) Nothing can be done to completely eliminate variation in process output.
• B) SPC and TQM are one and the same thing.
• C) Assignable causes of variation are purely random factors that can be assigned to a particular process.
• D) Common cause of variation are those factors that can be identified as commonly occurring at a particular process.

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Definitions:

Variable Costing

Variable costing is an accounting method that only considers variable costs in the calculation of the cost of goods sold, excluding fixed costs.

Net Operating Income

Income derived from normal business operations after subtracting all operating expenses but before interest and taxes.

Absorption Costing

An accounting procedure that integrates all production-related costs, capturing direct material expenses, direct labor costs, and all overheads, variable and fixed, within the cost framework of a product.

Net Operating Income

The amount left from a company's sales revenue after subtracting the costs of running the business, excluding tax and interest expenses.