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While they want to make sure that the customer receives a high quality product they want to ascertain that the benefit of making certain quality improvements will actually translate into something the customer will buy. The process of comparing the quality expense to potential return on investment is called:
a. Quality ROI
b. Process analysis
c. Monte Carlo analysis
d. Marginal analysis
Marginal Analysis should define the cost to value ratio in delivering quality product
D – This defines a marginal analysis: where the benefits from improving quality equal the costs to achieve that quality. In this case, if the costs to make improvements does not translate into something the customer will pay for, then it may not be beneficial to make the improvement
