Which of the Four Major Categories of Quality Costs Is

question 7

Multiple Choice

Which of the four major categories of quality costs is particularly hard to quantify?

• A) prevention costs
• B) appraisal costs
• C) internal failure costs
• D) external failure costs
• E) None is hard to quantify.

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Definitions:

Retained Earnings

The portion of a business’s profits not distributed to shareholders, instead reinvested in the business or kept for reserve.

Cash Dividends

Payments made by a corporation to its shareholder members in the form of cash.

Stock Dividends

A dividend payment made to shareholders in the form of additional shares rather than cash.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.