The Big Cost of Poor Quality Is the Cost of

question 17

Multiple Choice

The big cost of poor quality is the cost of

• A) replacing defective parts.
• B) lost customers.
• C) recalling defective goods.
• D) rework and training.
• E) induction training.

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Definitions:

Quantity

Quantity refers to the amount or number of units of a product or service offered for sale or consumed.

Budget Constraint

A representation of all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.

Slope

A measure of the steepness or gradient of a line, representing the ratio of the vertical change to the horizontal change between two points on the line.

Price

The financial cost associated with acquiring a good, service, or asset.