This Is the Total Cost Incurred by an Organization Because

question 41

Multiple Choice

This is the total cost incurred by an organization because the product does not meet user requirements (for example, rework, poor user productivity) .

• A) External failure cost
• B) Internal failure cost
• C) Cost of nonconformance
• D) Cost of quality

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows over a period of time.

Taxable Income

Taxable income is the portion of an individual's or corporation's income used to determine how much tax they owe to the government in a specific period.

Operating Costs

Expenses associated with the day-to-day functioning of a business, excluding financing costs and taxes.

Income Tax Rate

The income tax rate is the percentage at which individual or corporate income is taxed by the government.