A Prime Example of an Internal Failure Cost Is The

question 85

Multiple Choice

A prime example of an internal failure cost is the:

• A) labor cost associated with inspecting every item produced.
• B) labor cost associated with repairing an item returned under warranty.
• C) material cost of a piece of stock metal that has had too large a hole drilled in it.
• D) material cost of the paint applied to the case of a finished unit.

---

Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Foreign Corporations

Businesses that are incorporated in one country but are registered to do business in other countries outside of their home jurisdiction.

Merger

A combination of two or more corporations in which only one of the corporations continues to exist.

Shareholder Approval

The consent given by shareholders, usually through a voting process, for certain decisions or actions proposed by a company's management or board.