Which of the Following Statements Relating to Total Quality Management

question 90

Multiple Choice

Which of the following statements relating to total quality management is TRUE?

• A) The only effect of internal failure is loss of material.
• B) Poor quality generally does not increase the inventory level or lead times.
• C) To produce 100 good units in a process with a 20 percent defective rate, the company must produce a total of 120 units.
• D) High product quality in manufacturing can have significant market implications for a firm.

Appreciate the integration of marketing channels with the overall marketing strategy.

Understand the basic functions performed by intermediaries within distribution channels.

Identify the different types of utilities created by marketing channels.

Distinguish between direct and indirect marketing channels.

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, corresponding to the total hours that machines are in operation.

Controllable

Costs or factors that can be adjusted or influenced by the actions of a company or individual within a particular timeframe.

Direct Materials

Essential substances or components specifically allocated to the creation of a product, identifiable in the final product.