_____ is a useful financial performance indicator,which managers use to prioritize improvement projects and gauge the effectiveness of total quality efforts.
A)Benchmarking
B)Direct costing
C)Cost of quality
D)Qualitative Investment Analysis

Question

Quizplus · Accepted Answer

Cost of quality is a financial performance indicator that measures the cost to produce a quality product or service, including prevention costs, appraisal costs, internal failure costs, and external failure costs. By analyzing the cost of quality, managers can identify areas for improvement and allocate resources to quality improvement projects. This helps in prioritizing improvement projects and gauging the effectiveness of total quality efforts. Benchmarking is a process of comparing performance metrics with industry peers, direct costing is a costing method that only includes direct costs, and qualitative investment analysis is a method of evaluating investment options based on non-financial criteria.

_____ Is a Useful Financial Performance Indicator,which Managers Use to Prioritize