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:

Tariff

A tax imposed by a government on goods and services imported from other countries to increase their price and encourage or protect domestic industry.

Imported Oil

Oil that is bought from foreign countries to meet domestic consumption demands.

Tariff Revenue

Income earned by a government from imposing taxes on imported goods.

Imported Oil

Oil that is bought from other countries for use, reflecting dependency on foreign sources for energy supply.