Podcast
Questions and Answers
What is the main reason a manager might consider redesigning a process?
What is the main reason a manager might consider redesigning a process?
- To increase process variability
- To eliminate unacceptable output
- To relax specifications
- To meet specifications (correct)
In the context of Quality Control Capability analysis, when is a process considered capable?
In the context of Quality Control Capability analysis, when is a process considered capable?
- When the Cp value is at least 1.33 (correct)
- When the process SD is less than 6
- When the capability is less than the specification width
- When the process variability exceeds specifications
What is one way to handle a process that is deemed not capable based on Quality Control Capability analysis?
What is one way to handle a process that is deemed not capable based on Quality Control Capability analysis?
- Eliminate unacceptable output using 100% inspection
- Use an alternative process (correct)
- Relax the specifications
- Increase the process variability
What does a Process Capability Ratio (Cp) of 1.33 imply?
What does a Process Capability Ratio (Cp) of 1.33 imply?
Which action might a manager take if examining the specifications during Quality Control Capability analysis?
Which action might a manager take if examining the specifications during Quality Control Capability analysis?
How does Process Capability Ratio (Cp) influence the capability of a process?
How does Process Capability Ratio (Cp) influence the capability of a process?
What would be a manager's primary concern if the process capability was less than the specification width?
What would be a manager's primary concern if the process capability was less than the specification width?
What would increasing both upper and lower specifications result in?
What would increasing both upper and lower specifications result in?
Which assumption of cost-volume analysis is violated if a company produces multiple products?
Which assumption of cost-volume analysis is violated if a company produces multiple products?
If the fixed cost of setting up a production line is $200,000 and the variable cost per unit is $300, what is the break-even quantity if the cost of buying each unit is $1,200?
If the fixed cost of setting up a production line is $200,000 and the variable cost per unit is $300, what is the break-even quantity if the cost of buying each unit is $1,200?
If the revenue per unit is $1,500 and the variable cost per unit is $800, what is the maximum possible contribution per unit?
If the revenue per unit is $1,500 and the variable cost per unit is $800, what is the maximum possible contribution per unit?
If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the minimum revenue required to break even if 10,000 units are produced?
If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the minimum revenue required to break even if 10,000 units are produced?
If the revenue per unit is constant with volume, but the variable cost per unit decreases as volume increases, what happens to the break-even point?
If the revenue per unit is constant with volume, but the variable cost per unit decreases as volume increases, what happens to the break-even point?
Which of the following is not an assumption of cost-volume analysis?
Which of the following is not an assumption of cost-volume analysis?
If a company has a fixed cost of $250,000 and a variable cost of $10 per unit, what is the minimum number of units that must be sold at $20 per unit to generate a profit?
If a company has a fixed cost of $250,000 and a variable cost of $10 per unit, what is the minimum number of units that must be sold at $20 per unit to generate a profit?
If a company's variable cost per unit is $5 and the selling price per unit is $10, what is the maximum possible contribution per unit?
If a company's variable cost per unit is $5 and the selling price per unit is $10, what is the maximum possible contribution per unit?
If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the total cost if 5,000 units are produced?
If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the total cost if 5,000 units are produced?
If a company has a fixed cost of $500,000 and a variable cost of $50 per unit, and the selling price per unit is $100, what is the minimum number of units that must be sold to generate a profit?
If a company has a fixed cost of $500,000 and a variable cost of $50 per unit, and the selling price per unit is $100, what is the minimum number of units that must be sold to generate a profit?
