When a faulty part fails, damage is worst at which place?
AIncoming goods bay
BManufacturer's site
CSupplier's site
DCustomer's site
Answer & Solution
Correct answer: D. Customer's site
Failure at the customer's site is the worst case because it adds repair, recall and liability costs.
Keep practising Total Quality Management
Browse all Total Quality Management questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
What does offshoring refer to?Why does outsourcing give budget flexibility?In outsourcing, what does transition methodology describe?Which is a tactical outsourcing model?Global labour arbitrage in offshoring gives savings from lower what?Which event may trigger step-in rights under an outsourcing contract?What do step-in rights let a client do in an outsourcing contract?What is co-sourcing in outsourcing practice?