UK Accounting Glossary
Zadj acts as a means of comparing the potential for defects.
A means of comparing the potential for defects. Used to represent the probability of error, Zadj can also determine the extent of a defect as it repeats throughout a process. For example, if the margins on a book are printed too wide, the printing process will create hundreds of defects multiplied by the quantity printed. Despite this high number of recurring defects, represented by Zadj, there is only one opportunity for correction within the process.
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This glossary post was last updated: 30th September 2019.