Which Type of Quality Cost Would a Firm Most Want

question 28

Multiple Choice

Which type of quality cost would a firm most want to eliminate or reduce as much as possible?

• A)Prevention costs
• B)Appraisal or inspection costs
• C)Internal failure costs
• D)External failure costs

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Definitions:

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.

Constant Dividend

A dividend policy in which a company pays out a fixed amount of dividend per share irrespective of its financial performance.

Rate of Return

The profit or deficit realized on an investment over a certain time, denoted as a percentage of the investment's beginning price.