The Average Outgoing Quality (AOQ) Is

question 61

Multiple Choice

The average outgoing quality (AOQ) is:

• A) the average number of good units produced per hour.
• B) the expected proportion of defects a sampling plan will allow.
• C) the level of quality desired by the customer.
• D) the worst level of quality tolerated by the consumer.

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Definitions:

Installation

The process of setting up and configuring hardware or software systems to make them ready for operation.

Earnings Before Taxes

An indicator of a company's financial performance calculated as revenue minus expenses, excluding taxes.

Annual Depreciation

The annual allocation of the cost of an asset over its useful life, reflecting the consumption or the decline in the value of the asset over that period.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity and ability to finance day-to-day operations.