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# Analysing Problems and Improve Quality MCQ (Multiple Choice Questions) PDF - 2

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## Analysing Problems & Improve Quality Questions and Answers : Quiz 2

MCQ 6:

The formal way of differentiating, between non-random and random variations, in manufacturing process is classified as

1. statistical process control
2. statistical failure control
3. statistical control of prevention cost
4. statistical control of sunk cost
MCQ 7:

If the net initial investment is \$985000, returned working capital is \$7500, then an average investment over five years will be

1. \$596,300
2. \$485,300
3. \$496,250
4. \$486,250
MCQ 8:

In the budgeted fixed overhead rate, the number of machine hours are considered as

1. denominator level
2. numerator level
3. fixed level
4. variable level
MCQ 9:

The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as

1. bundled products allocation method
2. variable cost allocation method
3. stand-alone cost allocation method
4. incremental cost allocation method
MCQ 10:

The cost function, in which cost does not change with any change in level of activity is a part of

1. step price functions
2. step object functions
3. step constant functions
4. step cost functions

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