SCENARIO 19-3 A Quality Control Analyst for a Light Bulb Manufacturer Is

question 106

Multiple Choice

SCENARIO 19-3
A quality control analyst for a light bulb manufacturer is concerned that the time it takes to produce a batch of light bulbs is too erratic.Accordingly,the analyst randomly surveys 10 production periods each day for 14 days and records the sample mean and range for each day.

-Referring to Scenario 19-3,suppose the analyst constructs an R chart to see if the variability in production times is in-control.What is the lower control limit for this R chart?

• A)4.84
• B)3.37
• C)2.98
• D)1.34

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Definitions:

Discretionary Fixed Costs

Discretionary fixed costs are fixed expenses that can be adjusted or eliminated without directly impacting the short-term productivity of the business, such as advertising or research and development costs.

High-Low Method

An accounting technique used to estimate the variable and fixed components of a company's costs, based on the highest and lowest levels of activity.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Non-Manufacturing Costs

Expenses that are not directly related to the production of goods, including selling, general, and administrative expenses.