In Activity-Based Management, Which Quality Cost Would NOT Be Considered

question 180

Multiple Choice

In activity-based management, which quality cost would NOT be considered value-added?

• A)internal failure
• B)appraisal
• C)external failure
• D)none of the above

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Definitions:

Unproductive

Refers to resources or activities that do not contribute to the output or efficiency of a process or operation.

Fixed Costs

Costs that do not change in total with changes in the volume of production or sales, such as rent, salaries, and insurance.

Relevant

Pertaining to something that is closely connected or appropriate to the matter at hand, especially in decision making or problem-solving.

Decision

The act of making a choice among various alternatives.