The chart which represents how regularly the defect occurs in production process is classified as ___________?
Correct answer: D. Pareto chart
- A. relevant costing diagram
- B. cause and effect diagram
- C. control chart
- D. Pareto chart
Explanation
A Pareto chart displays the frequency or relative importance of defects, helping identify which defects occur most often. A control chart instead tracks process variation over time to show whether the process remains statistically controlled.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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