Acceptance Sampling's Primary Purpose Is To

question 34

Multiple Choice

Acceptance sampling's primary purpose is to:

• A) estimate process quality.
• B) identify processes that are out of control.
• C) detect and eliminate defectives.
• D) decide if a lot meets predetermined standards.
• E) determine whether defective items found in sampling should be replaced.

---

Definitions:

Variable Costs

Expenses that change in proportion with the level of production or business activity, such as materials and labor directly involved in manufacturing.

Fixed Costs

Costs that remain constant for a set period of time, regardless of changes in the level of activity or volume of output.

Contribution Margin Ratio

The portion of sales revenue that exceeds variable costs, expressed as a percentage.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.