If a Process Is Neither Capable nor in Control,the Appropriate

question 12

Multiple Choice

If a process is neither capable nor in control,the appropriate first step is to:

• A)remove common causes.
• B)redesign the equipment.
• C)remove sources of special cause variation.
• D)determine the process capability index.

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Definitions:

Equivalent Unit

An equivalent unit measures a portion of completed goods in terms of an equal number of fully completed units, used in cost accounting to assess production and inventory.

Current Period

Refers to the present accounting period or cycle in which business transactions are being recorded and reported.

Nearest Cent

Rounding a monetary amount to the closest cent, often used in financial transactions to avoid fractions of a cent.

FIFO Process Cost Method

An inventory valuation method that assumes the first items produced or acquired are the first ones sold, affecting production and inventory costs.