Suppose That You Are in the Market for a New

question 178

Multiple Choice

Suppose that you are in the market for a new car, and are having trouble deciding between two different models.If you ultimately decide to make your purchase based on the evaluations you read in a car magazine, then you are making a decision ____.

• A)as a social animal (rather than a cultural animal)
• B)based on the deliberate system (rather than the automatic system)
• C)based on nature (rather than nurture)
• D)based on the 'bad is stronger than good' principle

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Definitions:

External Failure Costs

Costs incurred when a customer receives a defective product.

Appraisal Costs

Costs related to identifying defective units before they are shipped to customers.

Optimum Quality Level

The level of quality at which the total cost associated with quality management (including prevention, appraisal, and failure) is minimized.

Balanced Scorecard

A set of performance measures that provide a comprehensive view of the organization by recognizing the goals of shareholders, the satisfaction of customers and employees, and methods to improve the firms internal processes.