Which of the Following Statements About Process Quality Control Is

question 50

Multiple Choice

Which of the following statements about process quality control is NOT true?

• A) Assignable cause variation is also referred as special cause variation.
• B) An observation outside the control limits is an example of a special cause of variation.
• C) Common cause variation can be eliminated from the process by removing the potential causes.
• D) The control limits will include 99.74% of the population under the normal probability distribution assuming that the process is in control.

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Definitions:

Perpetual Inventory System

A method of inventory management where updates to inventory levels are made in real-time following every sale or purchase.

Merchandise Inventory

Goods that a retail merchandising business holds for sale to customers.

Periodic Inventory System

An inventory system that records inventory purchase or sales at the end of a period rather than after each transaction.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.