Which of the Following Would Be Classified as an External

question 36

Multiple Choice

Which of the following would be classified as an external failure cost on a quality cost report?

• A) Reentering data because of keying errors.
• B) Customer returns arising from quality problems.
• C) Test and inspection of in-process goods.
• D) Rework labor and overhead.

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Definitions:

Executory

Describes a contract or lease that has not yet been fully performed or completed by all parties involved.

Formal

Adhering to established conventions or requirements; official.

Purchase Price

The amount of money paid to buy goods, services, or assets.

Offeror

The party in a contractual agreement who proposes the terms of the contract to the offeree for acceptance.