Which of the Following Describes the Purpose of Statistical Process

question 32

Multiple Choice

Which of the following describes the purpose of statistical process control (defect-prevention) ?

• A) A consumer buys a TV and plugs it in.It doesn't work and she returns it.
• B) A soft drink company samples its product at 25 retail establishments to determine if the canner's mixture meets the soft drink company's standard.
• C) The Army purchases hammers and tests 10 of them before accepting the entire shipment.
• D) Computer chips received by a computer maker are sampled before the shipment is accepted or rejected.
• E) The manufacturer of pocket knifes samples its process at three stages before allowing the pocket knives to be assembled.

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Definitions:

Acquire Inventory

The process of obtaining goods and materials for sale or use in production by a company.

Estimated Ending Inventory

An approximation of the value or quantity of inventory that a company expects to have at the end of a period, calculated using the cost of goods sold formula.

Gross Profit

The difference between revenue from sales and the cost of goods sold, before accounting for operating expenses.

Inventory Cost

The total cost associated with buying, producing, and storing inventory, including purchase prices, production costs, and related expenses.