Quality Improvement Efforts Are Often Credited with Reducing

question 22

Multiple Choice

Quality improvement efforts are often credited with reducing

• A)The number of found defects
• B)Overall production costs
• C)The number of sales personnel
• D)Quality initiatives
• E)The required number of control charts

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Definitions:

Percent of Sales Method

A financial forecasting model that predicts future variables, such as expenses and inventory levels, as a percentage of projected sales.

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.

Bad Debt Expense

An expense reported by businesses to account for receivables that are no longer collectible, affecting the net income.

Allowance for Doubtful Accounts

A contra-asset account on the balance sheet, estimating the amount of receivables that are expected to be uncollectible.