The Four Categories of Cost Associated with a Cost-Of-Quality (COQ)

question 95

Multiple Choice

The four categories of cost associated with a Cost-of-Quality (COQ) reporting system are:

• A) External failure, internal failure, prevention, and carrying.
• B) External failure, internal failure, prevention, and appraisal.
• C) External failure, internal failure, training, and appraisal.
• D) Warranty, product liability, training, and appraisal.
• E) Warranty, product liability, prevention, and appraisal.

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Definitions:

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Surplus

Surplus refers to the situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.