All the Following Costs Are Generally Included in a Cost-Of-Quality

question 126

Multiple Choice

All the following costs are generally included in a Cost-of-Quality (COQ) report except:

• A) Warranty claims.
• B) Forgone contribution margin on lost sales.
• C) The cost of making sales calls.
• D) Design re-engineering costs.
• E) The cost of implementing a statistical process control (SPC) system.

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Definitions:

Cash Inflows

The total amount of money received by a company from its various business activities, including sales, financing, and investments, during a specific period.

Net Income

What remains of a company’s revenue after all expenses, including taxes and costs, have been removed.

Balance Sheet Equation

An accounting formula representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but retained by the company to reinvest in its business or to pay debt.