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The Cost of Quality - TQM and Responsibilty Accounting

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Given the seemingly simple situation in which the management of a company is concerned about the number of defective products workers in an assembly-line production process produce in a profit responsibility center, suggest several control processes (or other means) that could be implemented by management to reduce the number of defective products.

Assume that defects are found at an internal inspection point - that is, before shipment to customers.

For each control process, identify any controllable/noncontrollable, engineered, discretionary, or committed costs that would be incurred if the control process is adopted.

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Solution Summary

The Cost of Ignoring Quality
For each control process, identify any controllable/noncontrollable, engineered, discretionary, or committed costs that would be incurred if the control process is adopted.

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Dear Student,
Below I have outlined some of the ISO 9000 standards that you can use to answer your question:
These are not paraphrased, they are the words of the ISO 9000 standards available online at

http://www.iso.org/iso/iso_catalogue/management_standards/quality_management/iso_9000_selection_and_use/iso_9000_family_core_standards.htm

The cost of ignoring quality is very high. As evidence of the importance of quality, the International Organization for Standardization has developed quality standards referred to as ISO 9000. These standards identify quality guidelines for design development, production, inspection, installation, and servicing of products and services.

A company experiencing high levels of defective products from workers in an assembly-line production process can consider introducing a number of quality control tools, including, prevention tools, appraisal tools, and correction tools.

The following is a list of the tools and the ...

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