Ordinarily,managers are not aware of the magnitude of their quality costs because these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Question

Quizplus · Accepted Answer

Quality costs are often hidden and difficult to identify because they are spread across different departments and processes, making it difficult to track them using traditional cost accounting methods. As a result, managers may not realize the full extent of their quality costs unless they undertake a thorough analysis of their operations and processes.

Ordinarily,managers Are Not Aware of the Magnitude of Their Quality