Which of the Following Would Be Classified as an External

question 142

Multiple Choice

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

• A) Re-entering data because of keying errors.
• B) Repairs and replacements beyond the warranty period.
• C) Disposal of defective products.
• D) Technical support provided to suppliers.

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Definitions:

Cost-Justified

A determination that an expense, investment, or action is deemed reasonable or worthwhile based on its cost.

Robinson-Patman Act

is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Producer Surplus

The disparity between what sellers are prepared to accept for a product or service and the amount they actually get.