Question: Differences from benchmarks) For a benchmark, assume that the average firm incurs quality costs in the following proportions: With a partner, explain why the following

Differences from benchmarks) For a benchmark, assume that the average firm incurs quality costs in the following proportions:

Prevention Appraisal Internal failure 25% 25 25 External failure Total costs 25

With a partner, explain why the following industries might 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 LO.1

Prevention Appraisal Internal failure 25% 25 25 External failure Total costs 25 100%

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