Joseph Juran Defined Quality as "Fitness for Use," Which Means

question 11

Multiple Choice

Joseph Juran defined quality as "fitness for use," which means that

• A)a product or service should be priced competitively.
• B)an organization should produce products that will help customers stay healthy.
• C)companies should focus on products that help the community.
• D)products should be very durable.
• E)a product or service should satisfy a customer's real needs.

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Definitions:

Net Operating Income

The profit a business makes after subtracting operating costs, yet prior to removing interest and tax expenses.

Contribution Margin Ratio

The contribution margin ratio measures the percentage of sales revenue remaining after covering variable costs, contributing to covering fixed costs and generating profit.

Net Operating Income

A metric that calculates a company's profit after subtracting operating expenses but before interest and taxes are deducted.

Unit Variable Cost

The cost of producing one unit of a product or service which varies with the level of production or sales.