Variation in the Quality of Production Output That Is Due

question 58

Multiple Choice

Variation in the quality of production output that is due to factors such as machine tools wearing out is called

• A)common-cause variation
• B)assignable-cause variation
• C)acceptable-cause variation
• D)natural-cause variation

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Definitions:

Purchases Budget

A financial plan that estimates the amount of goods or inventory a business needs to buy over a certain period to meet its sales goals.

Production Budget

An estimation of the total output a company needs to meet its sales goals and inventory policies, expressed in units or monetary terms.

Merchandising Companies

Companies that purchase goods in finished form for resale to consumers, generating revenue primarily from the sale of merchandise.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials needed to meet production requirements.