Types of costs when quality considerations are made.

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Types of costs when quality considerations are made.

You are employed by a firm that produces tangible products. These products are then sold to a consuming populace that is unaffected by place, income, sex, race, age, or any environmental concerns. These products are acquired and used across the spectrum of consumers.

Task:

Prepare a memo (1-3 pages) to your supervisor that addresses the following:

A. Identify the three types of costs when quality considerations are made.

B. Explain each of these types of costs using examples.

C. Evaluate the three types of costs considering the trade-offs within manufacturing a product and/or producing a service.

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