Quality Can Improve Profitability by Reducing Costs

question 13

Multiple Choice

Quality can improve profitability by reducing costs. Which of the following statements does not support this argument?

• A) Firms can use flexible pricing to charge lower prices because products cost less to produce, which means greater profits.
• B) Firms with lower rework and scrap costs can charge higher prices for greater profits.
• C) Firms with better quality have increased productivity, which means greater profits and lower costs.
• D) Firms have lower warranty costs because of fewer returns, which means greater profits.

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Definitions:

Need for Affiliation

An individual's drive to relate to people and form social connections.

Intrinsic Motive

A type of motivation driven by an internal desire to perform a task for its own sake, due to personal satisfaction, interest, or enjoyment.

Behavioral Need

Psychological or physiological necessities that drive behaviors in individuals, seeking fulfillment to maintain well-being and homeostasis.

Application Process

The sequence of actions undertaken in order to complete a task or achieve a certain status, often involving submission of information or documents.