Mark each of the following statements as true or false and explain why the false statements are incorrect.
a. Results benchmarking relies only on comparisons to firms within the same industry.
b. SPC control charts are used to plot the costs of quality over time.
c. The total quality cost is the sum of prevention cost plus failure cost.
d. Total quality management focuses on production processes rather than on customer satisfaction.
e. Traditional accounting systems have separate accounts to capture quality costs.
f. Appraisal cost is used to monitor and correct mistakes.
g. As the number of defective products manufactured rises, internal failure costs also rise but external failure costs are expected to decline.
h. Pareto analysis is used to help managers identify areas in which to focus quality-improvement efforts.
i. Quality is free.
j. Higher quality yields lower profits but higher productivity.