Suppose a Quality Control Inspector Pulls Every Tenth Can of Soup

question 32

Multiple Choice

Suppose a quality control inspector pulls every tenth can of soup from a conveyor belt to ensure that the cans are filled to capacity. How should this procedure be evaluated?

• A) The sample may not be a random sample.
• B) The procedure is defective because it fails to specify which can is selected first.
• C) The procedure guarantees that the sample is a random sample.
• D) The sample is not large enough for the kind of test being done.
• E) The procedure calls for an excessively large sample.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or output in a manufacturing environment.

Variable Distribution Costs

Expenses that change in proportion to how a product is stored, handled, and delivered.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.