Business, a publicly traded biotechnology company started production and sales of its main product - cartridges that allow DNA samples for analysis on a microchip. At the beginning of the quarter, sales are difficult to predict, and the company is experiencing fluctuations in output and unpredictable gross profit, which violates the board of directors. Financial staff is investigating whether to accept the new value-based approach to quality. With plenty of spare capacity, the decision on how to apply the potential costs is critical to the company's management and reporting strategy with analysts. "Hide
by Robert S. Kaplan, Christina Darwall Source: Harvard Business School 17 pages. Publication Date: 01 Oct 2001. Prod. #: 102030-PDF-ENG
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