Beatriz Has Been Asked to Create Specific Objectives for the Quality-Control

question 26

Multiple Choice

Beatriz has been asked to create specific objectives for the quality-control department she supervises. Her company has received a number of complaints from customers who have found broken or ill-fitting parts in the products they have purchased. Which of the following would be a well-stated objective?

• A) Reduce the number of defective products that leave the factory by 50% over the next four months.
• B) Work smarter not harder.
• C) Get it right the first time.
• D) Strive for customer satisfaction at all times.

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Definitions:

Contribution Margin

The amount by which the sales of a product exceed its variable costs, representing the portion of sales revenue that contributes to covering fixed costs and generating profit.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.