Which of the Following Observed on a Control Chart Suggests

question 9

Multiple Choice

Which of the following observed on a control chart suggests a process that is NOT in control?

• A) Points follow a smooth pattern from the lower control limit to the upper control limit.
• B) The number of points above and below the center line is about the same.
• C) Points fall randomly above and below the center line.
• D) No points are outside the control limits.

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Definitions:

Cash

A form of liquid asset that consists of currency, including coins and banknotes, which can be used immediately for transactions.

Supplies Expense

The cost associated with consumable supplies used during an accounting period in the operation of a business.

Supplies

Items used in the day-to-day operations of a business, such as office supplies, which are essential for conducting business activities.

Inventory

The cumulative inventory of products and materials retained by a business for selling or for use in manufacturing.