=+16-37 KK Quality improvement, Pareto diagram, cause-and-effect diagram OBJECTIVES 2, 3 Murray Ltd manufactures, sells and installs photocopying machines. Murray Ltd has placed a heavy emphasis on reducing defects and failures in its production operations. It wants to apply the same total quality management principles to manage its accounts receivable.

Required 1 On the basis of your knowledge and experience, what would you classify as failures in accounts receivable?