TABLE 10-12 A Quality Control Engineer Is in Charge of the Manufacture

question 83

True/False

TABLE 10-12
A quality control engineer is in charge of the manufacture of computer disks. Two different processes can be used to manufacture the disks. He suspects that the Kohler method produces a greater proportion of defects than the Russell method. He samples 150 of the Kohler and 200 of the Russell disks and finds that 27 and 18 of them, respectively, are defective. If Kohler is designated as "Group 1" and Russell is designated as "Group 2," perform the appropriate test at a level of significance of 0.01.
-Referring to Table 10-12, the same decision would be made with this test if the level of significance had been 0.05 rather than 0.01.

Understand the concept of cost drivers and their role in cost allocation.

Understand the concept and necessity of equivalent units of production in process costing.

Differentiate between process and job order manufacturing and cost accounting systems.

Recognize the role and focus of managers in process manufacturing systems.

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