Question
Describe the consequences of poor quality control?
Answer :
Word Count : 453
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Poor quality control can have a significant impact on the entire Order to Cash (O2C) process, particularly within the Accounts Receivable function. When the quality of products or services delivered is not properly managed, it can lead to errors, customer dissatisfaction, and financial losses. One of the immediate consequences of poor quality control is an increase in the number of returns and disputes from customers. Customers who receive defective products or experience subpar service are likely to request refunds, replacements, or credits, which directly affect revenue. A major consequence of this is delayed payments. In the O2C process, after goods or services are delivered, the company sends an invoice for payment. If the products or services are of poor quality, customers may withhold payment until the issue is resolved, leading to a delay in cash flow. This delay can disrupt the company’s liquidity and its ability to meet operational
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