For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention ......
Question:
Prevention ...... 25%
Appraisal ........ 25%
Internal failure ...... 25%
External failure ...... 25%
Total costs ....... 100%
Why might each of the following industries be inclined to have a spending pattern on quality costs that differs from the benchmark?
a. Pharmaceutical company
b. Department store
c. Computer manufacturer
d. Used-car retailer
e. Lawn service company
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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