Compute Process Capability Indices $101 \mathrm { cP }$ And the Process Standard Deviation Is

question 9

Multiple Choice

Compute process capability indices.
-Machine oil is used by clothing manufacturers to lubricate and protect sewing
Machines. A company that produces machine oil must ensure that the viscosity of its product meets customer requirements. Consequently, the viscosity of every batch of oil produced is measured. Suppose that the process mean is $101 \mathrm { cP }$ and the process standard deviation is $1.50 \mathrm { cP }$ . What is the $\mathrm { C } _ { \mathrm { pk } }$ index if the customer specifications require viscosity of the machine oil to be $100 \mathrm { cP } \pm 4.5 \mathrm { cP }$ ?

• A) 1.0
• B) 1.22
• C) 0.78
• D) 1.67
• E) None of the above

Recognize the conditions under which long-lived assets are considered impaired.

Comprehend the factors that affect the comparison of rate-of-return across companies due to GAAP for long-lived assets.

Understand the implications of asset impairment and the criteria for impairment assessment.

Understand the concept of departmental contribution to overhead and how it is calculated.

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