Signs that an organisation might have a high spoilage rate include higher than average warranty liabilities or a poor reputation for product quality.

Question

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High spoilage rates often lead to defective products, which can increase warranty liabilities as the company has to replace or repair more products. Additionally, consistently producing low-quality products can tarnish the organization's reputation, as customers may associate the brand with poor reliability and performance.

Signs That an Organisation Might Have a High Spoilage Rate