When Tires on New Ford Vehicles Were Blowing Out Prematurely

question 41

Multiple Choice

When tires on new Ford vehicles were blowing out prematurely, Ford CEO Jacques Nasser blamed Bridgestone/Firestone for the problem. Bridgestone, in turn, blamed drivers for the problem stating the tires were not inflated sufficiently. Bridgestone/Firestone was using which strategy?

• A) expression of innocence
• B) excuses
• C) apology
• D) justifications

---

Definitions:

Work in Process

Work in process (WIP) refers to partially finished goods that are still in the production process, representing a component of inventory valuation in manufacturing and project management.

Underapplied

Refers to a situation where the allocated indirect costs are less than the actual indirect costs incurred, resulting in a cost discrepancy.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and maintenance of equipment.

Work in Process

Inventory that includes all the materials, labor, and overhead costs for products in the production process but not yet completed.