In Addition to Identifying and Dealing with Defective Products Before

question 9

Multiple Choice

In addition to identifying and dealing with defective products before they reach customers,quality management is concerned with initiating process changes that will reduce the number of defective units produced.All other things held constant,a decrease in the number of defective units will increase throughput by

• A)increasing productive capacity.
• B)increasing productive processing time.
• C)increasing yield.
• D)increasing all components of throughput.

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Definitions:

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Return on Equity Ratio

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Quality of Income Ratio

A financial metric that evaluates the ability of a company to translate its earnings into cash, reflecting the quality and sustainability of its earnings.