Which of the Following Would Be Classified as an External

question 142

Multiple Choice

Which of the following would be classified as an external failure cost on a quality cost report?

• A) Re-entering data because of keying errors.
• B) Repairs and replacements beyond the warranty period.
• C) Disposal of defective products.
• D) Technical support provided to suppliers.

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Definitions:

Perfect Information

A situation in which all participants have access to all the information needed to make an informed decision.

State Of Nature

A term in decision theory and statistics referring to the actual outcome or underlying reality that affects decision-making or outcomes.

Sample Information

Information or data collected from a subset of a larger population, used to infer characteristics or parameters of the whole population.

Expected Monetary Value

A decision-making tool used to determine the average outcome of a set of uncertain possibilities, taking into account the probability and monetary value of each outcome.