Costs related to achieving high quality levels in products


Question:

Value chain, supply chain, and key success factors. A survey on the ways organizations are changing their management accounting systems reported the following:

a. Company A now prepares a value-chain income statement for each brand it sells.

b. Company B now presents in a single report all costs related to achieving high quality levels in its products.

c. Company C now presents in its performance reports estimates of the manufacturing costs of its two most important competitors, in addition to its own manufacturing costs.

d. Company 0 now contracts with its suppliers to frequently deliver small quantities of materials directly to the production floor

e. Company E now reports the percentage of times it fails to meet delivery dates that it has promised to customers.
Link each of these changes to value-chain or supply-chain analysis or to the key success factors that are important to managers.

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Accounting Basics: Costs related to achieving high quality levels in products
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