On Discovering an Improperly Adjusted Drill Press, Jack Joyner, Director

question 8

Multiple Choice

On discovering an improperly adjusted drill press, Jack Joyner, Director of Quality Control, ordered an inspection of every fifth casting drilled during the evening shift.Less than 1% of the sampled castings were defective; so, Jack released the evening shift's production to assembly.This is an example of _______________.

• A)nonparametric statistics
• B)nominal data
• C)descriptive statistics
• D)inferential statistics
• E)judgmental statistics

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time.

Variable Costs

Expenses which are dependent on the volume of activity within a business.

Profit-Volume Chart

A graphical representation that shows the relationship between a company's profits and its volume of sales, illustrating the break-even point and profit levels at different sales volumes.

Cost-Volume-Profit Chart

A chart that graphically shows sales, costs, and the related profit or loss for various levels of units sold. Also called a break-even chart.