Josephine's T-Shirts Faced a Lot of Complaints from Customers When

question 20

Multiple Choice

Josephine's T-Shirts faced a lot of complaints from customers when its recent batch of long-sleeved shirts was dispatched.The employees at Josephine's T-Shirts,hence,had to rework on the returned items,and in some cases,the company had to even replace the faulty goods.In this case,the costs incurred by Josephine's T-Shirts are an example of _____ costs.

• A) prevention
• B) appraisal
• C) internal failure
• D) external failure

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Definitions:

Additional Output

The extra quantity of output produced as a result of increasing the level of input by one unit.

Unit of Labor

A measurement of work or effort by an employee or worker.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.

Capital

Financial assets or their financial value, as well as the tangible factors of production that are used in creating goods or services.