Which of the Following Is Not Likely to Be a Performance

question 115

Multiple Choice

Which of the following is not likely to be a performance measure related to quality?

• A) Number of warranty claims per unit sold
• B) Average number of defects per unit
• C) Units sold
• D) Average time between product failures

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Definitions:

Net Book Value

The value at which an asset is carried on a balance sheet, essentially the cost of the asset minus accumulated depreciation.

Equipment Rental

The process of leasing machinery or equipment for a specific period instead of purchasing it outright.

Markup Per Unit

The sum added to the purchase price of products to account for operational costs and earnings.

Variable Cost

Expenses that change in proportion to the activity of a business.