Sources of Process Variation That Are Inherent to the Process

question 73

Multiple Choice

Sources of process variation that are inherent to the process design are called _____ causes of variation.

• A)common
• B)assignable
• C)unusual
• D)expected

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Definitions:

Raw Materials Cost

The expense of materials that are used in the manufacturing process to create goods, not yet processed or altered.

Direct Labor Wage

The remuneration paid to employees who are directly involved in the production of goods or the provision of services.

Budgeted Cash Balance

An estimated amount of cash a company expects to have on hand at the end of a specified period, based on anticipated inflows and outflows.

Cash Receipts

Cash receipts are the collection of money, including currency, checks, and electronic transfers, received by a business.