Acceptance Sampling

question 141

Multiple Choice

Acceptance sampling:

• A) is the application of statistical techniques to the control of processes.
• B) was developed by Walter Shewhart of Bell Laboratories.
• C) is used to determine whether to accept or reject a lot of material based on the evaluation of a sample.
• D) separates the natural and assignable causes of variation.
• E) is another name for 100% inspection.

---

Definitions:

Short-Term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Non-Interest-Bearing

A financial instrument or account that does not earn interest over time, implying that its value does not increase beyond the principal amount.

Promissory Note

A finance-related written assurance where one party obligates to pay the other a clearly defined monetary amount, either when required or at a particular future time.

Discounted

Refers to the process of determining the present value of a future amount of money or stream of cash flows given a specific rate.