Studies Have Shown That Improvements in Quality Can Lead To

question 117

Multiple Choice

Studies have shown that improvements in quality can lead to:

• A)A higher total cost as additional costs are spent to improve quality.
• B)Lower productivity because of the need to meet a higher quality standard.
• C)Increases in throughput time.
• D)Increases in productivity (i.e. ,lower manufacturing costs).
• E)Increased warranty costs.

---

Definitions:

Liability Reported

The documentation in financial accounting of any debts or financial obligations a company is responsible for.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a reference to measure lease liabilities under lease agreements.

Payments

The act of transferring money or value from one party to another as a settlement for a service, debt, or obligation.

Interest Expense

The cost incurred by an entity for borrowed funds, often appearing as a line item on the income statement.