Quality can improve profitability by reducing costs. Which of the following statements does not support this argument?
A) Firms can use flexible pricing to charge lower prices because products cost less to produce, which means greater profits.
B) Firms with lower rework and scrap costs can charge higher prices for greater profits.
C) Firms with better quality have increased productivity, which means greater profits and lower costs.
D) Firms have lower warranty costs because of fewer returns, which means greater profits.

Question

Quizplus · Accepted Answer

The Answer of Quality can improve profitability by reducing costs. Which of the following statements does not support this argument?
A) Firms can use flexible pricing to charge lower prices because products cost less to produce, which means greater profits.
B) Firms with lower rework and scrap costs can charge higher prices for greater profits.
C) Firms with better quality have increased productivity, which means greater profits and lower costs.
D) Firms have lower warranty costs because of fewer returns, which means greater profits.

Quality Can Improve Profitability by Reducing Costs