Ongoing Efforts to Reduce Costs,increase Product Quality,and/or Improve Production Process

question 131

Multiple Choice

Ongoing efforts to reduce costs,increase product quality,and/or improve production process once manufacturing has begun is known as

• A)cost management.
• B)kaizen costing.
• C)target costing.
• D)life-cycle costing.

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Definitions:

Internal Failure Cost

Expenses incurred when a product fails to reach quality standards before it is delivered to the customer, including scrap and rework costs.

Quality Cost Report

A financial report detailing the costs associated with ensuring products meet quality standards, including prevention, appraisal, and failure costs.

Rework Labor

The effort and cost associated with correcting defective goods or services after they have been produced.

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.