Activities Performed Under a Value Chain Approach to Quality Management

question 36

Multiple Choice

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

• A) Internal activities
• B) Prevention activities
• C) External activities
• D) Appraisal activities

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business, including rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.

Different Prices

A scenario in which a product or service is offered at varied prices to different customers or in different markets or circumstances.

Service Component

Part of a product offering that involves the provision of labor or expertise, rather than a physical product, to satisfy customer needs.

Operating Expense

Expenses incurred in the normal operation of a business, including costs like rent, utilities, payroll, and materials, but excluding cost of goods sold.