To Change the Process of Manufacturing, ____

question 83

Multiple Choice

To change the process of manufacturing, ____.

• A) the process, product, or service must be measured
• B) the data must be analyzed using control charting techniques
• C) action must be taken based on signals from the control chart
• D) both a and c
• E) all of the above

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Definitions:

Activity Level

A measurement of the volume of production or the quantity of services provided.

Activity Bases

Measures that assign costs to cost objects based on their use of activities; used in activity-based costing.

Mixed Cost

A cost consisting of both fixed and variable components and changes in response to variations in production or sales levels.

Variable And Fixed Cost

Expenses that include both variable costs, which fluctuate with production or service levels, and fixed costs, which remain constant regardless of activity.