A Cpk Index of 1

question 70

Multiple Choice

A Cpk index of 1.00 equates to what defect rate?

• A)five percent
• B)3.4 defects per million items
• C)2.7 defects per 1,000 items
• D)97.23 percent
• E)one percent

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Definitions:

Inventory Method

A strategy used by businesses to value and manage their inventory, affecting how costs are recorded and profits calculated.

Weighted-Average

A mathematical average that takes into account the varying degrees of importance of the numbers in a data set.

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of an accounting period.

Periodic Inventory

An inventory accounting system where inventory levels and cost of goods sold are determined at the end of an accounting period.