The Creation of Separate Quality Departments in the Early 1900s

question 9

Multiple Choice

The creation of separate quality departments in the early 1900s caused:

• A)indifference to quality among workers and their managers.
• B)upper management to be more knowledgeable about quality.
• C)production quality to substantially improve.
• D)production efficiency to decline.

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Definitions:

Debt-equity Ratio

This ratio compares a company's total liabilities to its shareholder equity, indicating the relative proportion of shareholder equity and debt used to finance a company's assets.

Pre-tax Cost

This is the cost of an investment or financial activity before the application of taxes.

Cost of Equity

The return that investors expect for investing in a company's equity, often estimated using models like the Capital Asset Pricing Model (CAPM).

Weighted Average Cost

The combined cost of both variable and fixed goods, services, or sources of finance, weighted according to their proportions.