Common Causes of Process Variation

question 104

Multiple Choice

Common causes of process variation:

• A)Are sources of unusual process variation.
• B)Usually must be remedied by management.
• C)Usually must be remedied by local supervision.
• D)Always exist together with assignable causes of variation.
• E)Can never be remedied or reduced.

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Definitions:

Standard Machine-Hours

A predetermined measure of how long machines are expected to operate to complete a production task.

Overhead

General operating expenses of a business that are not directly attributable to a specific product or service, such as rent and utilities.

Underapplied

Refers to a situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Manufacturing Overhead

All the indirect costs associated with producing a product, excluding the direct costs of labor and materials.