Kisa Is a Production Manager at Western Widgets,Inc

question 202

Multiple Choice

Kisa is a production manager at Western Widgets,Inc. ,a manufacturing corporation that sells its products worldwide.Thanks in part to Kisa's efforts,Western Widgets has dramatically improved the quality of its products.Kisa believes that the high quality of its output will give Western Widgets a competitive edge.Kisa's view is:

• A)not wrong,but it is too limited.Consumers demand high quality goods,along with competitive prices and outstanding service.
• B)incorrect.The typical consumer is more interested in price than quality.
• C)not exactly correct.The best strategy for market success is to develop new products quickly and get them to the market before the competition,even if quality suffers a bit.
• D)correct.Producing high quality goods is the key to success in the competitive marketplace.

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Definitions:

Actual Rate

A term that can refer to the real, observed interest rate, exchange rate, or other financial variable in contrast to a theoretical or estimated rate.

Standard Hours

The expected time it should take to complete a specific task or produce a given quantity of goods under normal conditions.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.