A Manager Does a Break-Even Analysis and Finds That His

question 50

Multiple Choice

A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time.Which of the following could be responsible for this event?

• A)TFC has increased.
• B)P has increased.
• C)VC has decreased.
• D)P has decreased.

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Definitions:

Acceptance Sampling

A statistical quality control method that involves inspecting a random sample of goods to decide whether the entire batch meets specified criteria.

Predetermined Standards

Benchmarks or criteria established before the start of a process or project to guide performance and outcomes.

P-Chart

A quality control chart that is used to control attributes.

Process Sampling

The technique of selecting a sample of elements from a process for analysis, to determine the quality or performance of the process.