Bill Christensen, the production manager, was grumbling about the new quality cost system the plant controller wanted
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1. Why do you suppose that the controller wants a written record of spoiled material? If “everybody knows” what the spoilage rate is, what benefits can come from keeping a written record?
2. Now consider Bill Christensen’s position. In what way(s) could he be correct? What did he mean by his remark concerning scrap reduction? Can this be avoided? Explain.
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Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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