The Copy-Mart Is a Copy Centre Located Next to a University

question 133

Essay

The Copy-Mart is a copy centre located next to a university. The store provides a wide range of services for faculty and students, including copying, digital photo printing, providing computer time and technical support for word processing, and other miscellaneous services. The store manager has been concerned about quality problems that have recently increased. Customers have been returning copies because pages are missing or unreadable and new copies must be made. Complaints have also been received about the quality of technical support, and the computer systems have been subject to frequent viruses and crashes.
ABC information can be used in an ABM system to manage quality. In such cases, quality costs are often classified as related to prevention activities, appraisal activities, production activities, or post-sales activities.
a)Define each type of quality-related activity in your own words.
b)Based on the information above and your own creative thinking, give one example of each activity type for Copy-Mart.
c)Suppose the managers of Copy-Mart implement an ABC system to measure the costs of quality. How could they use information from this system to improve operations?

Recognize the role of objectives in measuring actual performance.

Distinguish between preventive maintenance and concurrent control.

Appreciate the significance of long-range planning and financial projections.

Identify the capacity of companies to make mistakes and learn from them.

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Definitions:

Sold At A Discount

Selling a product or security for less than its face value or normal selling price.

Cash Interest Paid

The actual cash outflow for interest payments on debt obligations during a specific reporting period.

Sold At A Discount

A financial term indicating that a security or product is sold for less than its nominal or face value.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or loan, not accounting for compounding or market conditions.