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For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention 30% Appraisal 25% Internal Failure 15% External Failure 30%

For a benchmark, assume that the average firm incurs quality costs in the following proportions: 

 

Prevention30%
Appraisal25%
Internal Failure15%
External Failure30%
Total Costs100%

 

Why might each of the following industries be inclined to have a spending pattern on quality costs that differs from the benchmark?

  1. Pharmaceutical company
  2. Department store
  3. Computer manufacturer
  4. Used-car retailer
  5. Lawn service company

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