The Process Capability Measures Cp and Cpk Differ Because

question 71

Multiple Choice

The process capability measures Cp and Cpk differ because:

• A)only one ensures the process mean is centered within the limits.
• B)Cp values above 1 indicate a capable process,while Cpk values above 2 indicate a capable process.
• C)They do not differ: both are identical.
• D)Cp values for a given process will always be greater than or equal to Cpk values.
• E)Both A and D are correct.

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Definitions:

Consistent Application

The principle that companies should apply accounting policies uniformly throughout reporting periods to ensure comparability of financial statements over time.

Comparability

A financial accounting concept that ensures financial statements can be compared between periods and with other companies.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.