1. (TCO 11) An advantage of financial cost of quality measures is that they (Poi
ID: 2382101 • Letter: 1
Question
1. (TCO 11) An advantage of financial cost of quality measures is that they (Points : 3) are often easy to quantify and understand.
provide immediate short-run feedback on whether quality improvement efforts have, in fact, succeeded in improving quality.
direct attention to physical processes and therefore focus attentions on the precise problem areas needing improvement.
provide a single, summary measure of quality performance.
"What purpose is best served for cost allocation and which criterion is most appropriate?"
"How will total costs and total revenues change under each solution?"
"What are the amounts of incremental costs and incremental revenues under each alternative?"
Explanation / Answer
Subordinate all nonbottleneck operations to the bottleneck operation.
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