The Quality Based View

question 71

Multiple Choice

The quality based view

• A)holds that high quality pays for itself.
• B)emphasizes constantly improving systems and processes.
• C)focuses on long-run profits
• D)All of the answers are correct.

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Definitions:

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

Margin

Net operating income divided by sales.