What Responsibility Centers Are Judged for Effectiveness Rather Than Efficiency

question 39

Multiple Choice

What responsibility centers are judged for effectiveness rather than efficiency?

• A)investment center
• B)revenue center
• C)standard cost center
• D)profit center
• E)expense center

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Definitions:

Spec Limits

Short for "Specification Limits," which are the maximum and minimum values within which a product or process's performance measures must lie to meet customer requirements.

Sample Mean

The average value calculated from a subset of a larger population, used in statistics as an estimate of the population mean.

OC Curve

Operating Characteristic Curve, a graph that describes how well a statistical test or procedure performs in detecting a true condition.

AOQ Curve

is a graphical representation that shows the relationship between the Average Outgoing Quality (AOQ) and the fraction defective in incoming batches, used in quality control to determine the effectiveness of inspection procedures.