Glory Enterprises Quality Control Report for August Contains the Following

question 11

Multiple Choice

Glory Enterprises quality control report for August contains the following items:
$\begin{array}{ll}\text {Liability costs associated with defective products}&\$10,000\\\text { Disposal costs of defective products failing inspection }&20,000\\\text {Disposal costs of raw materials failing inspection}&30,000\\\text { Quality training provided to workers } & 40,000 \\\text { Lost sales due to poor quality and defective products } & 50,000 \\\text { Advertising costs to offset perception of poor product quality } & 60,000 \\\text { Raw materials used to correct defects before product was sold } & 70,000 \\\text { Testing and inspecting a sample of finished goods } & 80,000\end{array}$
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What would be the total of the external failure costs on the August quality control report for Glory Enterprises?

• A) $70,000.
• B) $110,000.
• C) $120,000.
• D) $140,000.

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Definitions:

Organisational Design

The process of structuring an organization in order to effectively manage resources, operations, and achieve goals.

Lateral Communication

The exchange of information, ideas, or requests between individuals at the same level within an organizational hierarchy.

Mechanistic and Organic Designs

Two contrasting organizational structures where mechanistic designs are rigid and hierarchical, suited for stable environments, whilst organic designs are more flexible and adaptive, ideal for dynamic environments.

Organic Design

A design philosophy that seeks to be holistic, fluid, and cohesive, often inspired by natural forms and processes.