Advocates of the Quality Approach Believe That Most U

question 48

Multiple Choice

Advocates of the quality approach believe that most U.S. companies' performance management systems are incompatible with the quality philosophy for a number of reasons. Which one of the following is among these reasons?

• A)Most existing systems measure performance in terms of quality, not quantity.
• B)They involve both internal and external customers in setting standards and measuring performance.
• C)Companies share financial rewards of successes with employees according to how much they have contributed to them.
• D)Rewards are connected to business results and profits.
• E)Employees are held accountable for good or bad results to which they contribute but do not completely control.

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Definitions:

Farm Revenues

The total income received by a farm from the sale of its products and services.

Total Revenue

The sum of money a company earns from selling its products or services, prior to deducting any costs.

Elastic

Describes a situation in which the quantity demanded or supplied of a good or service changes significantly as its price changes.

Inelastic

A characteristic of goods whereby a change in price leads to a relatively smaller change in the quantity demanded or supplied.