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Cost of Quality and Environmental Costing
The Ceramic Coffee House has been experiencing declining sales over the last two quarters and has noticed a reduction in the numberof customers. Gupta Sanjay, the store owner, recently negotiated a new supply contract with Bargain Beans. He has been able to purchase his coffee beans for a 20% discount over his last supplier
Question a. Discuss the implications of using a cheaper coffee bean. Be specific as to how this will impact costs of quality.
Question b. What environmental costs might a coffee house need to consider? What are some suggestions to reduce its overall environmental costs?
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