Which of the Following Is Considered a Cost of Quality

question 79

Multiple Choice

Which of the following is considered a cost of quality?

• A) external failure costs
• B) opportunity costs
• C) sunk costs
• D) contingent liabilities

---

Definitions:

Actuarial Information

Data and analysis related to the calculation of insurance risks and premiums, often based on statistical methods.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Bondholders

Individuals or entities that hold bonds issued by corporations, municipalities, or governments and are entitled to receive the bond's interest payments plus the return of the bond's principal upon maturity.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation, with a claim on a portion of its profits.