If Management Is Reviewing a Multiple-Period Trend Graph That Shows

question 164

Multiple Choice

If management is reviewing a multiple-period trend graph that shows individual quality cost categories, what might they expect to see?

• A)Overall quality costs decreasing as a percentage of sales with prevention costs, as a category, increasing over time.
• B)Overall quality costs decreasing as a percentage of sales with all categories decreasing over time.
• C)Overall quality costs increasing as a percentage of sales with external failure costs decreasing and prevention costs increasing.
• D)Overall quality costs remaining the same as a percentage of sales with prevention and appraisal costs increasing over time.

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Definitions:

Window of Opportunity

A limited period during which a particular condition or combination of conditions creates a favorable situation for action or decision.

Avocations

Activities or hobbies pursued outside one's main occupation, often for enjoyment or fulfillment.

Hobbies

Leisure activities pursued for pleasure and relaxation, not as a main occupation.

Corridor Principle

The corridor principle suggests that when entrepreneurs take action and start a journey, they are able to see and access opportunities that were not visible before starting their venture.