Which of the Following Statements About Six Sigma Quality Programs

question 2

Multiple Choice

Which of the following statements about Six Sigma quality programs is true?

• A) While Six Sigma programs often improve the efficiency of numerous operating processes, there is evidence that the approach can stifle innovative activities.
• B) Six Sigma is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations and 100 percent accuracy in performing tasks.
• C) Six Sigma's DMAIC process is a particularly good vehicle for improving performance when there are only small variations in how well an activity is performed.
• D) The focus of Six Sigma programs is on the development of new products or new business processes but not on improving existing products or business processes.
• E) Six Sigma is a system of statistical procedures for eliminating 92 percent of the variability in how a task is performed.

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Definitions:

Absorption Costing

By adopting this accounting model, all manufacturing costs including direct materials, direct labor, and both variable and fixed overheads, are rolled into the product’s cost.

Required Return

The minimum profit or yield that investors expect to earn on an investment.

Unit Product Cost

The cost to produce a single unit of product, accounting for direct materials, direct labor, and overhead on a per-unit basis.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.