On Discovering an Improperly Adjusted Drill Press, Jack Joyner, Director

question 42

Multiple Choice

On discovering an improperly adjusted drill press, Jack Joyner, Director of Quality Control, ordered a 100% inspection of all castings drilled during the evening shift.Jack is ordering a ___________________.

• A)statistic from the castings
• B)census of the castings
• C)sample of the castings
• D)sorting of the castings
• E)parameter of the castings

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Definitions:

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost when the quantity produced is incremented by one unit.

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.

Sunk Cost

Costs that have already been incurred and cannot be recovered or refunded, and should not influence future business decisions.

Average Fixed Cost

The cost incurred for fixed inputs (rent, salaries) divided by the quantity of output produced, which decreases as production increases.