A Quality Circle Studying the Problem of Incorrect Prices on Purchase

question 1

Multiple Choice

A quality circle studying the problem of incorrect prices on purchase orders identified several potential causes: incorrect information from requesting department, out-of-date catalogs from suppliers, defective computer software, and worker practices in the purchasing department.These potential cause-and-effect relationships are best illustrated by a _______________.

• A)check list
• B)Pareto chart
• C)control chart
• D)point-and-figure chart
• E)Fishbone diagram

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Definitions:

Accounting Profits

The total revenue of a company minus the explicit costs and depreciation.

Normal Profits

The return to the business owners for the opportunity cost of their implicit inputs.

MRP

Marginal Revenue Product, a term in economics that represents the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Investment

The allocation of resources, such as capital or time, in order to generate future profit or income.