Which of the Following Is an Advantage of Nonfinancial Measures

question 143

Multiple Choice

Which of the following is an advantage of nonfinancial measures of quality?

• A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.
• B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding.
• C) They focus managers' attention on how poor quality affects operating income.
• D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.

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Definitions:

Political Reforms

Changes aimed at improving the political system, including alterations to policies, institutions, or processes.

Interest Rate

The expense, depicted as a percentage of the principal sum, that a borrower must bear for the borrowing of assets from a lender.

Foreign-Currency Exchange

The conversion of one country's currency into another's, a key process in international trade and investments.

Net Exports

The disparity between what a nation exports and what it imports in total.