Acceptance Sampling

question 48

Multiple Choice

Acceptance sampling:

• A)may involve inspectors taking random samples (or batches)of finished products and measuring them against predetermined standards.
• B)may involve inspectors taking random samples (or batches)of incoming raw materials and measuring them against predetermined standards.
• C)is more economical than 100% inspection.
• D)may be either of a variable or attribute type,although attribute inspection is more common in the business environment.
• E)All of the above are true.

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Definitions:

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts offered.

Sales Discounts

Reductions in the sale price given by a seller to a buyer, often used as an incentive for early payment or bulk purchasing.

Receivable

Amounts of money owed to a company by its customers or other parties for goods or services provided.

Periodic Inventory System

An inventory system that updates inventory records at specific intervals, requiring physical counts to determine cost of goods sold.