What Was the Cost of Partially or Completely Fixing the Pinto

question 92

Multiple Choice

What was the cost of partially or completely fixing the Pinto gas tank to better withstand rear-end collision impact?

• A) The costs of the changes ranged from $1.80 to $15.30
• B) The costs were over 10% of the cost of the car
• C) The costs were too great because the car had to be redesigned
• D) None of the above

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Definitions:

Competitive Bidding

A procurement process where suppliers submit their bids to win a contract, based on price and/or other criteria.

Vertical Integration

Developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

JIT Partnerships

Just-In-Time partnerships; close collaborations between suppliers and companies to ensure timely delivery of parts, minimizing inventory.

Unnecessary Activities

Tasks or processes that do not add value or contribute positively to the end goal, often considered wasteful.