Use Attribute Control Charts

question 154

Essay

Use attribute control charts. The quality measures used in attribute control charts are discrete values reflecting a simple decision criterion such as good or bad.

---

Definitions:

Economic Profit

Profit calculated by subtracting both explicit (direct) and implicit (indirect or opportunity) costs from total revenues.

Economic Profit

The profit a company makes after deducting both explicit (direct payments) and implicit (opportunity) costs.

Normal Profit

Normal profit is the minimum level of profit needed for a company to remain competitive in the market, equivalent to the opportunity cost of capital.