Quality Can Improve Profitability by Reducing Costs

question 117

Multiple Choice

Quality can improve profitability by reducing costs.Which of the following is not an aspect of reduced costs by quality improvements?

• A)flexible pricing
• B)increased productivity
• C)lower rework and scrap costs
• D)lower warranty costs
• E)All of the above are aspects of reduced costs by quality improvements.

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Definitions:

Job K332

A specific work order or project identifier used to track expenses, progress, and completion within a job costing system.

Manufacturing Overhead

Encompasses all the indirect costs associated with the production process, including utilities, maintenance, and factory equipment depreciation.

Unit Product Costs

The total expense incurred to create a product divided by the number of units produced, encompassing both direct and indirect costs.

Machine-Hour

A unit of measure representing the operation of a machine for one hour, used in allocating manufacturing overhead costs to products.