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

Authors
Catherine Gaharan, Midwestern State University Karen Foust, Tulane University
Region
North America
Topic
Accounting & Finance
Length
5 pages
Keywords
quality costs
financial statement analysis
Copyright Holder
Society for Case Research
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

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.