A statistical control chart is best used for determining:
A) direct-material price variances.
B) direct-labor variances.
C) whether a variance is favorable or unfavorable.
D) who should be held accountable for specific variances.
E) whether a particular variance should be investigated.

Question

Quizplus · Accepted Answer

Statistical control charts are tools used to monitor the stability of processes and to determine if the process is in control or if there is an unnatural variation that needs investigation. They are not used for determining price variances, labor variances, the nature of variances (favorable or unfavorable), or accountability for variances.

A Statistical Control Chart Is Best Used for Determining