When Should 100% Inspection Be Used

question 2

Multiple Choice

When should 100% inspection be used?

• A) Whenever attributes are being measured
• B) When the expected cost of a defective item exceeds the cost of inspecting a unit
• C) With destructive testing
• D) When the cost of inspecting a unit exceeds the expected cost of a defective item
• E) 100% inspection should never be used

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Definitions:

Mortgage

A loan specifically used to purchase real estate whereby the property itself serves as security for the loan.

Collateral

The property or assets that a borrower offers to a lender as security for a loan.

Bankruptcy Code

The codified system of federal bankruptcy laws that governs the processes and procedures for declaring bankruptcy in the United States, providing legal frameworks for debt discharge and asset liquidation.

Reorganizations

The process of restructuring a company's business or legal structure, often for purposes of profitability, efficiency, or to adapt to new markets.