For a Given AQL and LTPD, Which One of the Following

question 10

Multiple Choice

For a given AQL and LTPD, which one of the following statements about the single-sampling plan is True?

• A) If c stays constant but n is increased, both the producer's risk and the consumer's risk will increase.
• B) If c stays constant but n is increased, both the producer's risk and the consumer's risk will decrease.
• C) If n stays constant but c is increased, the producer's risk will decrease and the consumer's risk will increase.
• D) If n stays constant but c is increased, the producer's risk will increase and the consumer's risk will decrease.

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Definitions:

Sales

The total revenue earned from the selling of goods or services, before any deductions are made.

Charge Customer

To bill a customer for goods or services provided, thereby creating an account receivable.

Cash Discount

A deduction from the invoice price that is allowed if payment is made within a specified period.

Credit

An accounting entry recording an increase in liabilities or equity or a decrease in assets, opposite of a debit.