For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention ......

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For a benchmark, assume that the average firm incurs quality costs in the following proportions:
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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Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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