Which of the Following Statements Is NOT TRUE About Special

question 4

Multiple Choice

Which of the following statements is NOT TRUE about special cause variations?

• A) They disrupt the random patterns of common cause variations.
• B) They arise from internal sources only.
• C) They appear sporadically.
• D) They are easily detectable using statistical methods.

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Definitions:

Salvage Company

A business specialized in saving, recovering, and selling the usable parts of damaged, inoperative, or discarded goods.

Incremental Cost

The additional cost incurred to produce one more unit of a product or service.

Annual Revenues

The total amount of sales and other income generated by a business within a fiscal year.

Direct Material

Raw input directly utilized in the creation of a product, essential for the product’s production process.