Match Each of the Following Activities with the Appropriate Quality

question 81

Short Answer

Match each of the following activities with the appropriate quality cost classification (a-d).
-Processing returned merchandise
A)Prevention cost
B)Appraisal cost
C)Internal failure cost
D)External failure cost

• A)Prevention cost
• B)Appraisal cost
• C)Internal failure cost
• D)External failure cost

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Definitions:

Accumulation

The process of gradually gathering or increasing amounts of something over time.

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.

Outsourcing

The business practice of hiring external vendors to perform services or produce goods that were previously handled internally, often to reduce costs or focus on core competencies.