Financial measures

Question 1

Financial measures

Answer 1

are helpful to evaluate trade-offs between prevention costs, appraisal costs and failure costs.
they focus on the costs of poor quality.

Question 2

Advantage 1

Answer 2

consistent with the attention-directing role of management accounting, COQ focuses attention on how costly poor quality can be.

Question 3

Advantage 2

Answer 3

assist in problem-solving by comparing different quality-improvement programmes and setting priorities for achieving maximum cost reduction.

Question 4

Advantage 3

Answer 4

provides a single, summary measure of quality performance