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:

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how efficiently assets are used to generate profit.

Net Income

The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenues.

Asset Turnover

A measure of how effectively a business is using its assets to generate sales.

Return on Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, demonstrating the profitability of a company from the perspectives of its equity investors.