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Which of the Following Is an Advantage of Nonfinancial Measures

Question 143

Multiple Choice

Which of the following is an advantage of nonfinancial measures of quality?


A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.
B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding.
C) They focus managers' attention on how poor quality affects operating income.
D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.

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