In a Cost of Quality (COQ) Report, Costs to Acquire

question 105

Multiple Choice

In a Cost of Quality (COQ) report, costs to acquire and install training equipment would be classified as:

• A) Prevention costs.
• B) Retention costs.
• C) Appraisal costs.
• D) Internal failure costs.
• E) External failure costs.

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in the production of goods or services.

Pollution Permits

Legal authorizations allowing entities to emit a specific amount of pollutants into the environment, used to regulate and reduce overall pollution levels.

Marginal Social Benefit

The additional benefit gained by society from the production or consumption of one more unit of a good or service.

Marginal Social Cost

The cost society bears for production of an additional unit of a good or service, including both private costs and any externalities.