One of the Earliest Steps in Designing a Quality Control

question 3

Multiple Choice

One of the earliest steps in designing a quality control system is to decide on:

• A)The amount of inspection to use
• B)Who should do the inspection
• C)The type of measurement to be used
• D)Training workers to perform inspection on their own work

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Definitions:

Sunk Cost

An expense that has been paid and cannot be retrieved.

Expected Cost

An estimate of the cost for a product, project, or operation that is anticipated under normal conditions.

Sell

The act of giving or handing over something in exchange for money.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.