A Quality Manager Has Established a Sampling Plan That Calls

question 72

Multiple Choice

A quality manager has established a sampling plan that calls for a sample size of 75 units from a shipment of 5,000 pieces 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 AOQ if the actual percentage of defectives in the lot is 2%? Table G.1 is appended to this exam.

• A) less than 0.014
• B) between 0.014 and 0.018
• C) between 0.018 and 0.022
• D) greater than 0.022

---

Definitions:

Owner's Capital

The total assets contributed by the owner of a company plus the retained earnings minus withdrawals made by the owner.

Journalize Closing Entries

The process of recording year-end closing entries in the journal to prepare the accounts for the next fiscal period.

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Post-Closing Trial Balance

A listing of all company account balances after end-of-period adjustments and closing entries have been made, used to check the balance of debits and credits.