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The Copy-Mart is a copy center 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 are 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 postsales 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?
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