As Regional Manager of KIM Corp

question 53

Multiple Choice

As regional manager of KIM Corp., Dwight is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget.Dwight's performance is evaluated on a(n)

• A)revenue budget approach.
• B)cash flow budget approach.
• C)expense budget approach.
• D)profit budget approach.
• E)capital budget approach.

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Definitions:

Nondefective

Referring to items or products that meet the required quality standards and are free of defects.

Control Charts

Tools used in statistical process control to monitor the consistency of processes over time and identify variances.

Control Limits

Statistical boundaries in a control chart that determine the acceptability range for a process variability, outside of which signals a process is out of control.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time, helping in the identification of out-of-control processes.