For Most Companies Embarking on a Quality Cost Program,management Typically

question 6

Multiple Choice

For most companies embarking on a quality cost program,management typically finds that actual costs,in order of highest to lowest,are:

• A)external failure, internal failure, appraisal, and prevention.
• B)internal failure, external failure, prevention, and appraisal.
• C)internal failure, prevention, external failure, and appraisal.
• D)External failure, prevention, internal failure, and appraisal.

---

Definitions:

Product Costs

Costs that are directly associated with the manufacturing of goods including materials, labor, and overhead.

Administrative Costs

Expenses related to the management and general operations of a business, including salaries of senior executives, legal and accounting services.

Period Costs

Expenses that are not directly tied to the production of goods and are instead charged to the time period in which they are incurred.

Product Costs

The direct and indirect costs incurred in producing a product, including materials, labor, and overhead expenses.