A System Is to Be Composed of 4 Identical Components

question 62

Multiple Choice

A system is to be composed of 4 identical components in series. What is the lowest reliability component that can be used in order to have an overall system reliability of 0.85?

• A) 0.93
• B) 0.94
• C) 0.95
• D) 0.96
• E) 0.97

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Definitions:

Variable Costing

An accounting method that accounts only for variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost calculations, excluding fixed manufacturing overhead.

Unit Product Cost

The complete expense incurred to manufacture a single item, encompassing materials, workforce, and indirect costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production (such as direct materials, direct labor, and variable factory overheads) into the costs of products.