Question: Indicate whether each of the cost control methods listed in a through g is ( 1 ) preventive, ( 2 ) corrective, or ( 3
Indicate whether each of the cost control methods listed in a through g is preventive, corrective, or diagnostic.
Increasing time to market to avoid costly product recalls.
Comparing inventory turnover at periodend to the industry average.
c Continually applying a management by exception approach by identifying significant differences between actual and budgeted labor costs.
Establishing metrics and goals for sustainability measures related to carbon emissions.
Collaborating with a key supplier during a product's design stage in order to meet a target cost.
Identifying the primary reason for a cost overrun and taking steps to fix the problem so that it
will not recur next period.
g Monitoring a dashboard of critical performance measures during the period in order to identify potential problems that require immediate action.
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