Question: For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention ...... 25% Appraisal ........ 25% Internal failure ...... 25%
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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a In a pharmaceutical company an external failure can mean loss of life permanent injury or unnecessary suffering Further through malpractice damages ... View full answer
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