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TABLE 18-9
The manufacturer of cat food constructed control charts and analyzed several quality characteristics. One characteristic of interest is the weight of the filled cans. The lower specification limit for weight is 2.95 pounds. The table below provides the range and mean of the weights of five cans tested every fifteen minutes during a day's production.
-Referring to Table 18-9, an X chart is to be used for the weight. The lower control limit for this data set is_____ , while the upper control limit is_____ .
Differential Costs
Differential costs refer to the difference in total cost that will result from selecting one alternative over another in decision-making processes.
Opportunity Costs
The value of the best alternative forgone when a decision is made to pursue a particular course of action.
Mixed Costs
Mixed costs are expenses that contain both variable and fixed cost elements, changing in total with the level of activity but not directly in proportion to changes in activity level.
Sunk Costs
Costs that have already been incurred and cannot be recovered, and thus should not affect future investment or business decisions.
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