Which of the following is a financial measure of quality?
A) operating income growth
B) percentage of highly satisfied customers
C) number of defective units shipped to customers as a percentage of total units shipped
D) interest costs

Question

Quizplus · Accepted Answer

Operating income growth is a financial measure of the growth and profitability of a company, which is an indicator of the quality of its operations.

Answer: C 
 The number of defective units shipped to customers as a percentage of total units shipped is a financial measure of the quality of a company's products and production process. A high percentage would indicate poor quality and could lead to negative financial consequences for the company.

Answer: D 
 Interest costs are a financial measure of a company's borrowing costs, which can impact its financial performance and overall quality. However, it is not a direct measure of quality compared to the other options.

Therefore, the best choices are A and C.

Which of the Following Is a Financial Measure of Quality