Fixed Costs Are Best Defined As

question 122

Multiple Choice

Fixed costs are best defined as:

• A)costs that do not vary with output.
• B)costs that vary with output.
• C)the sum of all marginal costs.
• D)the change in total cost when one more unit of output is produced.
• E)costs that decline as output increases.

---

Definitions:

Control Limits

The bounds of acceptable performance in statistical process control, outside of which a process is considered out of control and corrective action is required.

R-chart

A control chart used in statistical process control to monitor the process variability based on ranges of sampled subsets.

Process Capability

A statistical measure of a process's ability to produce output within specified limits, commonly assessed by comparing the process variation to allowable specification limits.

Control Limits

Control Limits are statistical boundaries set within control charts that represent the acceptable range of variations in a process.