Care must be taken in evaluating the nature of the demand: Is it a volume change, is it a change in product mix, or is it related to the timing of the order?
Absorption Costing: In cost management, an approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production.
2) The value of the test statistic that divides all possible values into acceptance and rejection regions.
The next grouping, B, represents about 20% of the items and 20% of the dollare volume.
In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected.
In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind.
Acceptance Number: In quality management, 1) A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected.
For example, if x or more units are bad within the sample, the lot will be rejected.