Chapter10S - SUPPLEMENT TO CHAPTER 10: ACCEPTANCE SAMPLING...

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SUPPLEMENT TO CHAPTER 10: ACCEPTANCE SAMPLING Teaching Notes Accounting may be particularly appreciative of this segment on acceptance sampling since it involves exactly the same principles as auditing. There are three points in the production process where monitoring takes place: before production, during production, and after production. The logic of checking conformance before production is to make sure that inputs are acceptable. The logic of checking conformance during production is to make sure that the conversion of inputs into outputs is proceeding in an acceptable manner. The logic of checking conformance of output is to make a final verification of conformance before passing goods on to customers. Monitoring before and after production involves acceptance sampling procedures; monitoring during the production process is referred to as process control . These procedures are explained in detail in the following pages. Figure 10S–1 gives an overview of where these two procedures are applied in the production process. For both acceptance sampling and process control, inspection provides key data for decision-making. Answers to Discussion and Review Questions 1. The objective of acceptance sampling is to make a decision on whether to accept or reject a lot. It is not to estimate lot quality. (Note that quality control—both acceptance sampling and control charts—involves significance testing rather than estimation.) 2. Process control is directed towards future output while lot control is concerned with passing or failing a lot of previously produced items. Lot control usually requires larger samples because order of production is not known for inspected items. 3.
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Chapter10S - SUPPLEMENT TO CHAPTER 10: ACCEPTANCE SAMPLING...

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