XYZ Manufacturing Has Received an Order to Produce a Rod

question 13

Multiple Choice

XYZ manufacturing has received an order to produce a rod 5 inches in diameter + .04 inch. In sample runs, the machine tool that will be making the rod has been able to produce rods with a mean diameter of 4.99 inches and a standard deviation of 0.011 inch. The process capability index for this process is

• A) 0.91
• B) 1.51
• C) -0.91
• D) -1.51

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Definitions:

Subsidiary Ledgers

Detailed records that support summary-level data contained in the general ledger, such as accounts receivable and accounts payable ledgers.

General Ledger

A complete record of all financial transactions over the life of a company.

Computerized Accounting Systems

Systems that use software to record, store, and process financial transactions and data, improving efficiency and accuracy in accounting.

Business Segments

Distinct parts of a company that deal with different types of products or services, often reported separately in financial statements.