Costs of Quality Incurred When Testing and Evaluating Products Is

question 22

Multiple Choice

Costs of quality incurred when testing and evaluating products is known as:

• A) Prevention costs
• B) Appraisal costs
• C) Internal failure costs
• D) External failure costs
• E) None of the above

---

Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with the level of output.

Long-Run Average Total Cost Curve

A graphical representation showing the relationship between output and average total cost when fixed cost has been chosen to minimize average total cost for each level of output.

Minimum

The lowest allowable or possible amount, level, or point.

Marginal Cost

The amount needed to generate one more unit of a good or service.