Cost of quality-tqm and responsibilty accounting


Problem:

Given the seemingly simple situation in which the management of a company is concerned about the number of defective products workers in an assembly-line production process produce in a profit responsibility center, suggest several control processes (or other means) that could be implemented by management to reduce the number of defective products.

Assume that defects are found at an internal inspection point - that is, before shipment to customers.

For each control process, identify any controllable/noncontrollable, engineered, discretionary, or committed costs that would be incurred if the control process is adopted.

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Accounting Basics: Cost of quality-tqm and responsibilty accounting
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