Variations in a process that are caused by specific events or factors that are frequently temporary and can usually be identified and eliminated are known as:
a. chance variation. c. assignable variation.
b. common variation. d. All of these choices are true.
C
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Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for
A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.
A major disadvantage of the high-low method of analyzing cost behavior is:
a. It bases its solution on only two possibly extreme observations, rather than all of the data points. b. It results in its analyzed cost being treated as either fixed or variable, based on which type of behavior it more closely resembles. c. Two persons could draw different lines through the data points. d. It enables non-representative points, called outliers, to be identified.
Preston Wade Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $145 each. Preston has the capacity to produce as many as 60 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit: Direct materials $12.00 Direct labor $15.00 Variable overhead $ 3.00 Fixed overhead $ 5.00 Refer to the Preston Wade information above
Preston has received a special order from a local plant nursery to purchase 40 birdhouses for a price of $80 each. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250. If Preston accepts the special order, net income will increase by: A) $1,050 B) $1,750 C) $2,000 D) $3,200
To prove __________ in a product liability case, the injured party must show that the defendant did not use reasonable care in the design or manufacture of its product
a. negligence b. strict liability c. breach of warranty d. defect