If the Lower-Control Limit of a P Chart Is Negative

question 22

Multiple Choice

If the lower-control limit of a P chart is negative,

• A)a mistake has been made in the computations
• B)use the absolute value of the lower limit
• C)it is set to zero
• D)None of these alternatives is correct.

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Definitions:

Fixed Manufacturing Overhead

Costs in manufacturing that do not change with the level of production output, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Job-Order Costing System

A costing system that assigns costs to specific production jobs, useful for customized orders.

Predetermined Overhead Rate

is a rate used to allocate manufacturing overhead to products, calculated before the accounting period based on estimated costs.

Manufacturing Departments

Units within a manufacturing organization, each specializing in a different stage or aspect of the production process.