Which of the Following Is the Cost of Quality Classification

question 15

Multiple Choice

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

• A) Appraisal costs
• B) Prevention costs
• C) External failure costs
• D) Internal failure costs
• E) Rework and wastage

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Definitions:

Cost Of Goods

The total cost of materials, labor, and manufacturing overhead expenses incurred in producing goods.

Physical Inventory

The process of counting and verifying the actual inventory on hand at a specific point in time.

LIFO Method

Last-In, First-Out, a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Periodic Inventory System

An inventory system that updates inventory records at specific intervals, requiring physical counts to determine inventory levels.