Establishing the Tolerable Exception Rate (TER)requires

question 44

Multiple Choice

Establishing the tolerable exception rate (TER) requires

• A)statistical frequency probability tables.
• B)random number tables.
• C)a computer program.
• D)professional judgment.

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Definitions:

Total Cost

The complete cost of producing a certain amount of output, including both fixed and variable costs.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced.

Marginal Cost

The increase in expense from creating one more unit of a product or service.