When a Process Is Influenced Only by Common Causes of Variation

question 83

Multiple Choice

When a process is influenced only by common causes of variation:

• A)The process may also be influenced by assignable causes of variation.
• B)Many plot points on a control chart will be outside the control limits.
• C)The process is always capable of meeting customer requirements.
• D)The process is in statistical control.
• E)The process is never capable of meeting customer requirements.

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Definitions:

Least Accurate

Describes the closest to being incorrect or the measurement or statement that has the highest degree of inaccuracy.

Reciprocal Services Method

A method of allocating support department costs to production departments that considers all inter-support-department services.

Sequential Method

A process or analytical approach where steps are followed in a specific, sequential order to achieve a desired result or solution.

Direct Method

A way of preparing a cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income for accruals.