Which of the Following Is Not Consistent with the Philosophy

question 56

Multiple Choice

Which of the following is not consistent with the philosophy underlying quality improvement methodologies?

• A) Improved quality reduces costs through less rework, fewer mistakes, and fewer delays.
• B) Better quality leads to higher market share and allows the company to raise prices.
• C) Senior managers must buy into quality improvement programs and communicate their importance to the organization.
• D) Quality improvement methodologies recognize that quality problems generally come from worker error.
• E) All of these are consistent with quality improvement methodologies.

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Definitions:

Return On Assets

ROA, also known as Return on Assets, quantifies the efficiency with which a company uses its assets to generate net income, serving as an indicator of managerial effectiveness.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Return on Assets

A profitability ratio that indicates how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, which are recorded in the investing section of the cash flow statement.