What Is the Final Step in Failure Modes and Effects

question 78

Multiple Choice

What is the final step in failure modes and effects analysis?

• A) describe effects of each failure mode
• B) estimate likelihood of failure
• C) eliminate or reduce highest risks
• D) estimate failure detection
• E) determine hazard likelihood and categorize

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Definitions:

Gross Margin

Gross margin is the difference between revenue and cost of goods sold (COGS) expressed as a percentage of revenue, indicating the efficiency with which a company produces goods.

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and salaries, but not including cost of goods sold.

Statement of Stockholders' Equity

A financial document showing changes in the value of a company’s equity over a specific period, including shares issued, dividends paid, and earnings retained.

Retained Earnings

The residual net income available to a business after distributing dividends to its shareholders.