Question

A statistical control chart is best used for determining: Select one: a. direct-material price variances. b....

A statistical control chart is best used for determining: Select one: a. direct-material price variances. b. whether a particular variance should be investigated. c. whether a variance is favorable or unfavorable. d. direct-labor variances. e. who should be held accountable for specific variances.

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Answer #1

The correct answer is "B" : Whether a particular variance should be investigated.

A statistical control chart is a chart which is used to study changes in processes and other data over time. Here the data is plotted in a time order and the chart is divided into many lines such as the central line, lower line and the upper line. The basic purpose/method is that by plotting the data into this chart we can compare the data with these lines and determine whether a variance should be investigated or not.

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