Modern Inc

question 64

Multiple Choice

Modern Inc.manufactures low-cost tables at a processing cost of $80 per table.The company produces 100 units per day and averages 90% good quality resulting in 10% defective items.Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center.The rework cost is $10 per unit. If the rework cost is increased to $50 the quality productivity ratio (QPR) is

• A)approximately 1.10.
• B)approximately 1.15.
• C)approximately 1.20.
• D)approximately 125.

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Definitions:

Tall Organization

An organization with relatively many levels in its hierarchy of authority.

Flat Organization

An organization with relatively few levels in its hierarchy of authority.

Spans of Control

Refers to the number of subordinates a supervisor or manager can effectively manage and oversee.

Divided Labour

The breakdown of work into smaller, specialized tasks to increase efficiency, also known as division of labor.