If There Are 40 Total Defects from 8 Samples, Each

question 53

Multiple Choice

If there are 40 total defects from 8 samples, each sample consisting of 200 individual items in a production process, which of the following is the fraction defective that can be used in a p-chart for quality control purposes?

• A) 2.5
• B) 0.25
• C) 0.025
• D) 0.0025
• E) 0.00025

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Definitions:

Inventory Returns Estimated

An estimate of the value of goods that are anticipated to be returned by customers, used for accounting and inventory management purposes.

Sales Refund Payable

A liability account representing the amount that a company expects to refund to customers for returned products.

Net Method

The net method is an accounting practice where purchase discounts are subtracted upfront from the cost of inventory, leading to the recording of purchases at their net cost if payment is made within a discount period.

Recording Purchases

The process of documenting transactions related to acquiring goods or services, essential for accurate financial reporting and inventory management.