Explain the four components of the cost of quality
Quality costs can be organized into the following four major categories.
1 . Prevention costs are costs expended to keep nonconforming goods and services from being made and reaching the customer.
2 . Appraisal costs are costs expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems.
3 . Internal failure costs are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer.
4 . External failure costs are costs incurred after poor quality goods or services reach the customer.
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The receivable turnover is expressed in terms of dollars
Indicate whether the statement is true or false
Which of the following mathematical expressions computes the net worth of a firm?
A. Net worth = Current assets minus current liabilities B. Net worth = Total assets minus current liabilities C. Net worth = Total liabilities minus current assets D. Net worth = Total assets minus total liabilities E. Net worth = Total liabilities minus current liabilities
In the context of internal components of organizations, the _____ of an organization is its mission, purpose, or goal for existing.
A. people B. task C. structure D. technology
When thinking about the product life cycle, a good manager knows that
A. sales and profits for individual brands always follow the same life-cycle pattern as industry sales and profits. B. all products will eventually earn a profit. C. the only stage in which products are introduced is the market introduction stage. D. a product that is mature in one market may be in the growth stage in another international market. E. None of these answers is correct.