In a Cost-Of-Quality (COQ) Reporting Framework, the Cost of Scrap

question 73

Multiple Choice

In a Cost-of-Quality (COQ) reporting framework, the cost of scrap, rework, and tooling changes are categorized as a(n) :

• A) External failure cost.
• B) Internal failure cost.
• C) Manufacturing overhead cost.
• D) Avoidable cost.
• E) Appraisal cost.

---

Definitions:

Economic Benefits

The advantages gained from financial activities, including profits, savings, or value creation, contributing to economic growth.

Erosion Prevention

Methods and practices aimed at stopping soil erosion to protect land and water resources, often involving vegetation or structural solutions.

Strong Property Rights

The legal protection and enforcement of individuals' rights to own, use, and transfer property, considered essential for economic development and innovation.

Low Birthrates

The situation in which the number of live births per 1,000 people in a population is lower than usual, indicating a decline in fertility.