Which of the Following Is True of a P-Chart

question 97

Multiple Choice

Which of the following is true of a p-chart?

• A)The lower control limit is found by subtracting a fraction from the average number of defects.
• B)The lower control limit indicates the minimum acceptable number of defects.
• C)The lower control limit equals D3 times p-bar.
• D)The lower control limit may be at zero.
• E)The lower control limit is the same as the lot tolerance percent defective.

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Definitions:

Predetermined Overhead Rate

A rate used in costing to allocate indirect costs to products or services based on a predetermined formula.

Job Order Costing

An accounting method used to track costs and evaluate the expenses associated with specific jobs or batches.

Process Costing

Process Costing is an accounting methodology used to allocate costs to units of product in processes where the products are indistinguishable from each other, such as in manufacturing of chemicals or food.

Job Cost Sheet

A document that records and tracks the costs associated with a specific job or project.