The Expected Number of Defective Items That Will Pass on to the Customer

question 7

Multiple Choice

The expected number of defective items that will pass on to the customer with a sampling plan is known as the

• A)lot tolerance percent defective.
• B)acceptable quality level.
• C)average outgoing quality.
• D)sampling plan.

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Definitions:

Transfer Price

The price at which goods and services are sold between departments or divisions within the same company or between affiliated companies.

Variable Cost

Costs that vary in direct proportion to changes in levels of output or activity, such as raw materials and direct labor.

Total Income

The sum of all revenues and gains a company earns during a period, before any deductions are made.

Missing Items

Goods or inventory that are unaccounted for due to loss, theft, or error within a business's operations.