The Permissible Limits of Deviation from the Desired Amount Is

question 31

Multiple Choice

The permissible limits of deviation from the desired amount is called which of the following?

• A) spread
• B) tolerance
• C) control limits
• D) process capability

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Definitions:

Profits And Losses

Financial results indicating the difference between a business's revenues and its costs over a period; profits indicate revenues exceed costs, whereas losses indicate the opposite.

Scarce Resources

Natural, human, and manufactured assets available in limited quantities that are used for the production of goods and services.

Highest Valued Uses

Refers to allocating resources or goods in a manner that maximizes utility or benefits for an individual or society.

Economic Profits

Profits exceeding the total opportunity costs of all resources used in production; also known as abnormal or supernormal profits.