Value-maximizing managers will undertake quality improvements only if:
A)the management overestimates the cost of enhancement.
B)the incentive and reward systems are well defined and functional.
C)the incremental benefits fall below the incremental costs of enhancement.
D)the incremental benefits exceed the incremental costs of enhancement.

Question

Quizplus · Accepted Answer

Value-maximizing managers will undertake quality improvements only if the incremental benefits (such as increased sales or improved customer satisfaction) exceed the incremental costs of enhancement. If the costs of enhancement are too high and the benefits are too low, managers may not pursue quality improvements.

Value-Maximizing Managers Will Undertake Quality Improvements Only If