Components

Case

Cost of Quality -- AT&T's Customer Service

Catherine Gaharan, Midwestern State University Karen Foust, Tulane University
November 1, 2013
SKU:
BUS-007519
Region: 
North America
Topic: 
Accounting & Finance
Length: 
5 pages
Keywords: 
quality costs, financial statement analysis
Student Price: 
$4.00 (€3.44)
Average rating: 
0

This descriptive case detailing a consumer's ordeal with AT&T culminating in a change to another service provider gives an opportunity to discuss cost of quality in terms of a service industry rather than a manufacturing environment. Students can also be asked to examine the financial statements of telecommunications companies to assess customer service expenses and to get a picture of the relative size of industry participants.

Learning Outcomes: 
  1. Discuss costs of quality with respect to providing customer service.
  2. Analyze relevant information from the financial statements with respect to treatment of customers.
  3. Assess industry structure by comparing financial statements of industry participants.
  4. Identify the potential advantages and disadvantages to customers and to companies of e-billing, e-payments, and e-communications.