To measure benefits from the discretionary cost activity called prevention and appraisal quality activities, a company might use which of the following surrogate measure of results?
A.The reduction in customer complaints.
B.The number of clients serviced.
C.The reduction in unplanned downtime.
D.The number of useful suggestions made by the CFO.
ANSWER: OPTION C
the reduction in unplanned downtime is used to measure the benefit from the discretionary cost activity
To measure benefits from the discretionary cost activity called prevention and appraisal quality activities, a company...
To measure benefits from the discretionary cost activity called preventative maintenance, a company might use which of the following surrogate measures of results? a.The reduction in customer complaints. b.The number of clients serviced. c. The reduction in unplanned downtime. d.The number of useful suggestions made.
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