Which of the Following Statements Is True of Six Sigma

question 31

Multiple Choice

Which of the following statements is true of Six Sigma?

• A)The higher the number of "sigmas," the higher the number of errors.
• B)At Six Sigma,a production process would be 90 percent accurate.
• C)Six Sigma work standards are based solely on numbers or quotas.
• D)It is almost impossible for a company to achieve Six Sigma perfection.
• E)Six Sigma is the modern successor to ISO 9000.

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Definitions:

Inventory Turnover Rate

Inventory turnover rate measures how often a company sells and replaces its stock of goods during a certain period, indicating the efficiency of inventory management.

Collection Period

A financial metric that indicates the average number of days it takes a company to collect payments from its credit sales, essentially a detailed aspect of collection time with focus on receivables.

Accounts Receivable Balance

The accounts receivable balance is the total amount owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for general purposes including statutory reporting and personal timekeeping.