Companies That Are Unable to Commit the Necessary Resources to Assess

question 68

True/False

Companies that are unable to commit the necessary resources to assess or certify supplier quality on their own will never accept ISO 9000:2008 registration as proxy evidence of a supplier's quality management capability.

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Definitions:

Additional Revenues

Extra income generated from sources outside of the company's main business operations.

Sunk Cost

Costs that have already been incurred and cannot be recovered or reversed.

Incremental Overhead Costs

Additional overhead expenses directly resulting from a specific business decision or activity.

Relevant Costs

Costs that should be considered when making decisions because they will be affected by the decision.