Assume That a Process Is Operating on Target and 99

question 109

Multiple Choice

Assume that a process is operating on target and 99.8% of the products manufactured just fit within the specification limits. What can you say about the process?

• A) The process is not capable.
• B) The process is just capable.
• C) The process is highly capable.
• D) The process is world-class capable.

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Definitions:

Ending Work in Process

The value of goods that are in the production process but not yet complete at the end of an accounting period.

Transferred Out

Transferred Out is a term often used in accounting and inventory control to denote goods or assets moved from one department, location, or account to another.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, computed by taking the number of partially completed units and converting them into a number of fully completed units.

Total Materials Costs

The total expense incurred by a company for the materials that are used in the production process of its goods or services.