If a Sample of 40 Units of Output Found 500

question 8

Multiple Choice

If a sample of 40 units of output found 500 defects,then the center line for monitoring the average number of defects per unit of output would be

• A) = 40
• B) = 0)08
• C) = 12.5
• D) = 20,000

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Definitions:

FIFO Method

An inventory valuation method where the first items acquired are the first ones sold, used to calculate the cost of goods sold and ending inventory.

Direct Materials Costs

The expenses incurred for raw materials that are directly involved in the manufacturing of products.

FIFO Method

A stock rotation system where the oldest stock (first in) is used or sold first (first out).

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, computed by assessing the work done as a fraction of the completed goods.