Which of the Following Statements About In-Control and Out-Of-Control Processes

question 19

Multiple Choice

Which of the following statements about in-control and out-of-control processes are true?
I. The mean chart and range chart always show that processes are in control.
II. A mean chart can be in control,while a range chart can be out of control.
III. A mean chart can be out of control,while a range chart can be in control.

• A)I only
• B)II only
• C)II and III
• D)I and III

---

Definitions:

Direct Labor Cost

The wages and other remunerations paid to employees who are directly involved in the production of goods or the provision of services.

Conversion Cost

The total cost of converting raw materials into finished goods, including labor and manufacturing overhead expenses.

Manufacturing Overhead

The collective expenses not directly tied to the production of a specific product, including costs like factory rent or utilities.

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.