Which of the Following Is Not a Nonfinancial Quality Metric

question 112

Multiple Choice

Which of the following is not a nonfinancial quality metric?

• A) Process yield (i.e., good output/total output).
• B) Number of defective parts produced (e.g., parts-per-million, ppm).
• C) Number of machine setups.
• D) Machine up-time (or, machine down-time).
• E) Trend in dollar amount of inventory held.

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Definitions:

Control

In an experiment or study, the standard to which comparisons are made; in management, the process of directing and regulating processes, systems, or organizations.

Net Investment

The aggregate investment in new capital assets less the depreciation charges on the current capital assets.

Gross Investment

The total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specific period.

Depreciation

The process by which the value of an asset decreases over time, often due to wear and tear or obsolescence.