Why Is Product Quality Sometimes Poorly Defined in a Firm

question 16

Multiple Choice

Why is product quality sometimes poorly defined in a firm?

• A)Managers are not clear on what characteristics customer care most about.
• B)Holistic measures of quality are difficult to develop.
• C)Managers in different functional areas tend to emphasize different dimensions of quality.
• D)All these answers are correct.

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Definitions:

Unused Capacity

Represents the available production or service capacity that is not currently being used or is underutilized.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual products or job orders, calculated before the actual costs are known.

Capacity

The maximum level of output that a company can sustain to produce goods or services.

Estimated Activity

An approximation of the level of operational or production activity expected in a certain period, typically used for budgeting and costing.