An Operating Characteristic (OC)curve Describes

question 128

Multiple Choice

An operating characteristic (OC) curve describes:

• A)how many defects per unit are permitted before rejection occurs.
• B)the sample size necessary to distinguish between good and bad lots.
• C)the most appropriate sampling plan for a given incoming product quality level.
• D)how well an acceptance sampling plan discriminates between good and bad lots.
• E)none of the above.

---

Definitions:

Lost Or Stolen Goods

This term refers to inventory items that are missing due to theft or misplacement and represent a loss to the business.

Sales Returns and Allowances

A reduction in sales revenue that occurs when customers return products or receive discounts for unsatisfactory goods.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, providing insight into operational efficiency.

Periodic Inventory System

An accounting approach where inventory and cost of goods sold are calculated at set periods, rather than continuously.