Which of the following is a consequence of improved quality control?

Question

Quizplus · Accepted Answer

The firm that improves its quality control will also reduce its costs of value creation. Improved quality control reduces costs by: (a) increasing productivity because time is not wasted producing poor-quality products that cannot be sold, leading to a direct reduction in unit costs; (b) lowering rework and scrap costs associated with defective products; (c) reducing the warranty costs and time associated with fixing defective products. The effect is to lower the costs of value creation by reducing both production and after-sales service costs.

Which of the Following Is a Consequence of Improved Quality