Improved Conformance in Production or Service Delivery Tends to Increase

question 7

Multiple Choice

Improved conformance in production or service delivery tends to increase profitability as:

• A)it helps in differentiating the product from its competitors and improves the perceived value of the product.
• B)it ensures that the services are performed according to the convenience of the customer.
• C)it leads to lower costs through savings in rework, scrap, resolution of errors, and warranty expenses.
• D)it leads to improved employee motivation.

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Definitions:

Unavoidable Expenses

Expenses that cannot be eliminated and are necessary for a business's operations or living expenses.

Business Segment

A part of a company that can be identified by particular products or services or by geographical areas, generating its own revenue and expenses.

Net Loss

The amount by which a company's expenses exceed its revenues, indicating that the business has spent more than it has earned in a specific period.

Total Cost Method

An accounting method that includes all costs related to the production of goods when calculating inventory cost.