SCENARIO 8-13-B
You Are the Quality Control Manager of a Water

question 34

True/False

SCENARIO 8-13-B
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. To collect evidence before
implementing any modification to the production process, your department has subjected 50 water
bottle to durability test and the following data on the number of times the handles have been used to
lift the bottles before they break are contained in the file Scenario8-13-DataB.XLSX. $$\begin{array} { l l l l l l l l l l } 493 & 506 & 515 & 491 & 500 & 505 & 517 & 510 & 506 & 503 \\503 & 491 & 495 & 496 & 496 & 505 & 493 & 486 & 504 & 483 \\514 & 494 & 497 & 501 & 493 & 490 & 510 & 494 & 494 & 495 \\494 & 486 & 495 & 506 & 506 & 507 & 502 & 498 & 510 & 501 \\500 & 505 & 492 & 486 & 501 & 496 & 501 & 521 & 510 & 498\end{array}$$ Assume that the population standard deviation is 5 and the number of times the handles have been
used to lift the bottles before they break follows a normal distribution.
-Referring to Scenario 8-13-B, a 90% confidence interval for the mean of the
population from the same sample would be wider than the 95% confidence interval for the mean
number of times the handles have been used to lift the bottles before they break.

Understand capacity analysis and its implications for business cost management.

Apply ABC data to make informed decisions about pricing, overhead, and resource allocation.

Understand the principles of time-driven activity-based costing.

Calculate customer cost analysis in time-driven activity-based costing.

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Definitions:

Reducing Costs

A process aimed at lowering the overall expenses involved in running a business or producing goods and services.

Supply Management

The practice of managing the supply chain activities and relationships to achieve competitive advantage and optimize cost.

Life Cycle Costing

The total cost of ownership of a product or system over its entire lifespan.

Operating Costs

Expenses associated with the day-to-day functions of a business.