The Cost Associated with Unplanned Machine Downtime,when Operators Halt the Production

question 48

Multiple Choice

The cost associated with unplanned machine downtime,when operators halt the production line after identifying an unacceptably high rate of defective output,should be classified as:

• A)a prevention cost.
• B)an internal quality cost.
• C)an internal failure cost.
• D)a reactive failure cost.

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Definitions:

Tax Rate

The portion of financial income that lawmakers decree as taxable for corporations or individuals.

Dividends Paid

The portion of a company's earnings distributed to shareholders, typically expressed as a dollar amount per share.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year.

Sales Capacity

The maximum volume or number of units a company can sell under current resources and market conditions.