Which of the Following Statements Is Correct Regarding Acceptance Sampling

question 18

Multiple Choice

Which of the following statements is correct regarding acceptance sampling?

• A) sample inspection is 100% accurate
• B) the consumer's risk is that a lot with less than the acceptable number of defects will be accepted
• C) The producer's risk is that a batch with more than the acceptable number of defects will be rejected
• D) The cost of the sampling plan must be balanced against the consumer's risk and the producer's risk
• E) Lots are accepted when the consumer's risk equals the producer's risk

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Definitions:

Profit Sharing

A company policy where employees receive a share of the company's profits based on its earnings, serving as an incentive and reward for employee performance.

Billable Hours

The amount of an employee's work time that can be charged to a client, commonly used in professional services like law and consulting.

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Profit Sharing

A compensation scheme where employees receive a portion of the company's profit, in addition to their regular salary.