A Quality Manager Has Established a Sampling Plan That Calls

question 13

Multiple Choice

A quality manager has established a sampling plan that calls for a sample size of 75 units and an acceptance number of 2.The supplier has agreed to a contract that calls for an AQL of 0.02 and an LTPD of .04.What is the probability of accepting the lot if the actual percentage of defective is 3%? Table G.1 is appended to this exam.

• A)less than 0.63
• B)between 0.63 and 0.66
• C)between 0.66 and 0.69
• D)greater than 0.69

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Definitions:

Standard Cost System

A cost accounting system that applies estimated costs to product costs for setting standards, controlling operations, and identifying variances or differences between actual costs and standard costs.

Direct Labor Costs

The total expense a company incurs for paying employees who are directly involved in the manufacturing of a product or the delivery of a service.

Standard Cost System

A cost accounting system that uses cost estimates for materials, labor, and overhead to assess performance by comparing these standard costs to actual costs incurred.

Work in Process

Inventory comprising goods that are in the production process but not yet completed.