Philip Crosby Has Developed What He Calls the 'Four Absolutes

question 13

Multiple Choice

Philip Crosby has developed what he calls the 'four absolutes' of management for total quality control. Which of the following is NOT one of Crosby's 'four absolutes' of management?

• A) Quality comes from defect prevention, not defect correction.
• B) Quality means conformance to standards.
• C) Quality as a performance standard must mean defect-free work.
• D) Quality comes from multiple defect inspections.
• E) Quality saves money.

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Definitions:

Expense Recognition Principle

An accounting principle that dictates the timing of reporting an expense, aligning it with the revenue it generates to accurately reflect financial performance.

Direct Write-off Method

An accounting method where uncollectable accounts receivable are directly written off against income at the time they are deemed nonrecoverable.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and therefore written off as an expense to the business.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjusting the books accordingly.