Six Sigma Quality Control

question 27

Multiple Choice

Six Sigma quality control

• A)is a strategy implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs.
• B)consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process.
• C)consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process.
• D)consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions.
• E)is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs.

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Definitions:

Budgeted Cost

The forecasted cost of a project or operation, set during the budgeting process and used for planning and control purposes.

Activity Rates

Rates used in activity-based costing to allocate indirect costs to specific products or services based on the activities required to produce them.

Activity Levels

Varying levels of operational or production activity in a company, which can affect budgets and costs.

Cost Pools

Cost pools are groupings of individual costs in an accounting system, categorized according to the process that incurred the cost, used to allocate costs effectively to products or services.